How to Closed GST opening
GST registration cancellation states that the taxpayer is not a GST registered person from the date of cancellation of registration. After the closed GST opening, there is no need to collect or pay GST, not file GST returns, or claim the input tax credit.
If you desire to close your GST opening as GST is not applying to you or closing your profession or business, the tax officers call cancellation. This content will help you to know the process of cancellation of GST.
Recently this new feature of cancellation of registration has been launched on the GSTIN portal but this is limited to three entities only which are discussed below:-
- The taxpayer
- Taxpayer’s legal heir
- GST officer
There is an initiation or cancellation of registration in some cases, such as the taxpayer’s death. You can also apply for voluntary registration, but this process can be done after 1 or more years have passed from the GST registration date.,
Consequences of closed GST opening
In case when a taxpayer will not pay GST for a business in which registration under GST is compulsory, the taxpayer cancels his registration. Still, his business continues, then it is called an offense under GST & he will be penalized heavily.
Cancellation of GST opening for Migrated Taxpayers
The person who is registered under erstwhile the laws of indirect tax have to compulsory migrate to GST. Those persons are not liable for registration under GST.
Here we are discussing some steps to closed GST opening on GST Portal by the migrated taxpayers:-
- Go to the login page & fill out your credentials correctly.
- Once the login page opens, click on Cancellation of Provisional Registration.
- The cancellation page opens, and your business name and GSTIN will automatically show on the screen.
- You need to give a proper reason why you are canceling your registration.
- You will be questioned that during the particular month whether you have issued any invoice.
- Fill in the details of authorized places and signatories.
- At last, sign off the account with EVC if you are a partnership or a proprietorship.
Every taxpayer who has not issued any tax invoice can aid the above-given services. In case the taxpayer has issued the tax invoice, then he needs to file FORM GST REG-16.
Closed GST opening by the taxpayer(Other than Migrated)
Reasons for cancellation of registration
- The business constitution changed.
- The business has been closed.
- The business is demerged, amalgamated, fully transferred, or disposed of.
Cancellation of forms
Every person who can go along with the method mentioned above has to file a cancellation application in FORM GST REG 16. The deceased taxpayer’s legal heirs will follow the same procedure.
- In FORM GST REG 16, you have to make an application for cancellation.
- You must include the given details in the form– payment details, liability thereon, input details, finished, semi-finished goods on the date hold in stock. You can apply for cancellation of registration.
- The proper officer issued an order to cancel registration in FORM GST REG-19 30 days from the application date.
Closed GST opening by the tax officer
Reasons of cancellation of registration by the officer
Officer can cancel the registration in case the taxpayer:-
- From the proclaim business place does not run any business.
- Issues bill or invoice without the supply of goods and services like in provision violation.
- Violation of anti-profiteering provisions.
- A taxpayer has not filed GSTR-1 as GSTR-3B is not filed for two or more two successive months.
- In the violation of the provisions of rules or act sec. 16 aids input tax credit.
Procedure for closed GST opening
- In case if there is a valid reason with the proper officer to cancel your registration, he will send a notice to the person in FORM GST REG-17.
- In 7 days from the issue of notice, the person should reply in the FORM REG-18 with why the registration will not cancel.
- In case if he gives a satisfactory reply, the proper officer will give up the doings & pass an order in the FORM GST REG-20.
- If there is a liability to cancel the registration, an order is issued by the proper officer in FORM GST REG-19, and within 30 days, the order will be sent.
Revocation of cancellation of closed GST opening
Meaning of revocation of cancellation
The meaning of revocation is the cancellation of a promise or decision. The meaning of revocation of cancellation of registration is that the cancel registration decision has been reversed & the taxpayer’s registration is valid. You can apply this only after the tax officer cancellation of the taxpayer’s registration on his stirring. These types of taxpayers can sue the officer for cancellation revocation within 30 days from the cancellation of the order.
Procedure for revocation of cancellation of registration
- A registered person could apply for revocation of cancellation of closed GST opening in FORM GST REG-21 if the proper officer canceled the registration.
- In 30 days from the service date, he should submit it at the common portal.
- The cancellation of registration can only be revoked when the proper officer will satisfy an order in the FORM GST REG-22 in 30 days time limit from the receipt date of application. The reason must be written in it for the revocation of cancellation.
- The proper officer can reject the revocation application by an order in FORM GST REG-05 & speak up to the applicant.
- The proper officer will issue a notice to tell why the application will not be rejected in FORM GST REG-23 before rejecting it. After that, the applicant should reply in FORM GST REG-24 in 7 working days from the service date of the notice.
- In 30 days, the proper officer must decide FORM GST REG-24.
Revocation application is filed in case there is the cancellation of registration due to the failure of file returns. These types of returns should be issued with the payment of all dues of penalty, interest, and tax.