Revised Process for Approval of GST Registration Cancellation Application
The GST Portal has revised the process for cancellation of GST registration by taxpayers through FORM GST REG-16. The revised process includes system-based validations and electronic approval of cancellation applications without tax officer intervention, subject to fulfilment of the prescribed conditions under Rule 20 of the CGST Rules, 2017.
The revised process is explained below:
Verification of Pending GST Returns
The GST Portal will verify whether the taxpayer has filed all applicable GST returns that are due on or before the effective date of cancellation mentioned in FORM GST REG-16.The taxpayer can submit the cancellation application only after filing all such returns.Further, where FORM GSTR-1 or details through the Invoice Furnishing Facility (IFF) have been furnished for any tax period, FORM GSTR-3B for that tax period must also be filed.
Pending for Returns Filing
After successful verification of the initially required returns, the cancellation application may move to the “Pending for Returns Filing” stage if any returns relating to the period up to the effective date of cancellation are not yet due for filing.
In such cases, the taxpayer must file these returns within their respective due dates.
Non-Filing of Returns
If the taxpayer fails to file the required GST returns within the prescribed due dates, the cancellation application will be forwarded to the jurisdictional tax officer for further action.
Cancellation Process Where Returns Are Filed Within Due Dates
Where the taxpayer files all required GST returns within the prescribed timelines, the cancellation application will be processed as follows:
Composition Taxpayers, NRTPs, OIDAR Taxpayers and ISDs
For Composition Taxpayers, Non-Resident Taxable Persons (NRTPs), OIDAR Taxpayers and Input Service Distributors (ISDs), GST registration will be cancelled through electronic approval without intervention of the tax officer.
Regular, Casual and SEZ Taxpayers
For Regular, Casual and SEZ Taxpayers, the GST Portal will verify the Output Tax Liability (OTL) for each tax period.
- Where OTL is ₹2.5 lakh or less for each tax period: GST registration will be cancelled electronically without tax officer intervention.
- Where OTL exceeds ₹2.5 lakh in any tax period: The taxpayer must file FORM GSTR-10, wherever applicable, within 3 days from the due date of the returns identified under the “Pending for Returns Filing” stage.
If the “Pending for Returns Filing” stage is not applicable, the 3-day period will be calculated from the date of submission of the cancellation application.
In such cases, the application will move to the “Pending for Final Return” stage.
Thereafter:
- If FORM GSTR-10 is filed within the prescribed timeline, registration will be cancelled electronically without tax officer intervention.
- If FORM GSTR-10 is not filed within the prescribed timeline, the cancellation application will be forwarded to the jurisdictional tax officer for further action.
Filing of FORM GSTR-10 After Cancellation by Tax Officer
Where the cancellation application is forwarded to the jurisdictional tax officer and registration is subsequently cancelled, the taxpayer must file FORM GSTR-10, wherever applicable, as per the existing procedure. In such cases, FORM GSTR-10 must be filed within 90 days from the effective date of cancellation.
Revised Process for Approval of GST Registration Cancellation Application in FORM GST REG-16
