The Govt. of India introduced the Goods and Service Tax (GST) in the year of 2017. It’s a Tax Law Implementation in which service charges and indirect taxes are included. To handle a GST Registration, you must handle a lot of work. GST brought to action on 1st July 2017.
Sometimes, after getting GST registration it may need to be canceled It must require in the cases when you are winding up your business, change in the constitution, a merger of business and many more reasons. It can be canceled by the Registered person, Authorized person or by an officer or by the Legal Heirs, in case of death of that person registered under GST. GST Registration cancellation is different from the GST registration amendment.
Reasons Why People Cancel GST Registration
There are many reasons behind the GST Registration Cancellation. A few of them are as follows:
- When a person does not want to operate the business and shut down all the set up quickly.
- GST Registration Cancellation happened whenever the turnover of the company is coming below than rupees 20 lakhs.
- If the person hands over their business to somebody else, then he or she required to cancel the GST registration and then in this case another owner of the same business gets new GST registration.
- When registered persons or entities change their constitution of business.
- When a registered person or entity merge with other Businesses.
Consequences of Canceling Registration
Some consequences which the owner can face after cancellation and surrendering GST registration.
- The taxpayer won’t be able to pay GST anymore in the future.
- After the cancellation of GST registration if the owner of the company runs his or her business then they must pay a heavy penalty to the Govt.
Information Required to Cancel the GST Registration
The following information must be mandatorily specified by the applicant while applying for cancellation in Form GST REG-16:
- Correspondence Address for future, which includes the Mobile Number and E-Mail ID.
- Grounds of cancellation.
- The desired cancellation dates.
- Particulars of the value and the tax payable on the stock of inputs which are available in Semi-Finished or Finished Goods and the Stock of Capital Goods/Plant and Machinery.
- Particular of registration of the entity wherein the existing unit has been Merged, Amalgamated or Transferred.
- Particulars of the Latest Return filed by the taxpayer along with the ARN of the particular return.