WHAT IS MEANT BY GST Cancellation?
GST registration can be canceled under specific conditions, either voluntarily by a registered individual or by the tax department. In case of the taxpayer’s demise, legal heirs can request cancellation. If the cancellation is initiated by the department, businesses have the option to appeal for reinstatement. After cancellation, the taxpayer must file a final GST return to complete the process and ensure tax compliance.
GST Cancellation
Reasons for Potential GST Registration Cancellation:
- An individual previously registered under prevailing laws but not obligated under the GST Act;
- The business has ceased operations, undergone full transfer due to reasons like the proprietor's demise, merged with another entity, demerged, or otherwise transferred;
- Alterations in the business structure or constitution;
- A taxable entity, excluding those voluntarily registering under section (3) of CGST Act, 2017, no longer requires registration;
- Registration acquired through fraudulent means, intentional misrepresentation, or concealment of information.
Under GST regulations, a registration can be revoked for specific reasons. The cancellation process can be initiated either by the tax authorities or by the registered entity themselves. Additionally, in the event of the registered individual's demise, their legal successors have the option to request registration cancellation.
