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Everything about GST Surrender or Cancellation

Online Legal India LogoBy Online Legal India Published On 23 Jan 2021 Updated On 06 Jan 2023 Category GST

What is meant by GST cancellation?

Circular on cancellation of GST registration period passed by 31st August 2021. The time limit to put in for official cancellation of registration which had been authorized by GST Council Law expanded up to 30th September 2021.

A registered person GST REG-21, if his registration has been abandoned relating to an action taken by a court of its own accord, without any request by the parties involved by the perfect officer.

Such individuals needed to submit it approx 30 days from the date of service of the invalidation order at the General Portal.

 When can one go GST cancellation?

The registration under GST is incontestable can be cancelled for distinct reasons. The cancellation can be initiated by two way either by the registered person or by the GST department. However, in case if any registered person is dead the legal heirs can apply for cancellation. If a situation like where the registration is cancelled by the department there is a provision for revocation or cancellation of the same.

Aftereffects of GST cancellation

  • Any taxpayer shall not be eligible to pay GST anymore.

  • For certain businesses categories, registration under GST is incumbent. If the GST registration is cancelled and business is still continued, it will mean an offence under GST and heavy penalties will apply.

Terms, When a Taxpayer Can Cancel the GST registration?

  • Discontinuance or closure of the business

  • A taxable person ceases to be liable to pay tax

  • Transfer of business on account of amalgamation, merger de-merger, sale, leased or otherwise

  • Change in constitution of business leading to change in PAN

  • Registered voluntarily but did not commence any business within the specified time

  • A taxable person not liable any longer to be registered under the GST act

How can we help you?

If you have set up a registered partnership firm then you must be responsible under GST. Otherwise, you will be penalized for it. 

Tax Rate is 25% if income or gross receipts of the company doesn't cross Rs. 250 Crore in every Financial Year.


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