As per provisions of section 29(1) of the CGST Act,2017 read along with rule 20 of the CGST Rules, 2017, the person registered under GST law can apply for cancellation of the GST registration suo moto by filing an application in Form GST REG-16 electronically on the GST portal.
Such cancellation application in Form GST REG-16 can be filed in case of any of the following circumstances-
- Closure/ discontinuation of the business for any reason including death, amalgamation or demerger or sale,
- Change in constitution of business,
- The registered person is not liable to pay tax under GST,
- The registered person is no longer liable to be registered under GST or intends to opt out of voluntary registration,
Once the cancellation application is filed, the proper officer will process the same and if found accurate, the proper officer will issue a cancellation order in Form GST REG-19. As per Rule 22(3) of the CGST Rules, 2017, such cancellation order is to be issued by the proper officer within a period of 30 days from the date of filing of Form GST REG-16.
In regard to above Goods and Services Tax Network (GSTN) has introduced new functionality in regard to the withdrawal of application for cancellation of registration on the GST Portal for taxpayers. The details in regard to functionality are discussed as under:
A functionality has been introduced for taxpayers to withdraw their application for cancellation of registration, filed in Form REG-16, provided no action has been initiated by the tax officer against their application. Now the effective date of suspension of a taxpayer is also displayed on the Portal when his/her profile is accessed using “Search Taxpayer” functionality.
A functionality has been introduced for taxpayers to withdraw their application for cancellation of registration, filed in Form REG-16, provided no action has been initiated by the tax officer against their application. Now the effective date of suspension of a taxpayer is also displayed on the Portal when his/her profile is accessed using “Search Taxpayer” functionality.
It is important to note here that prior to the withdrawal of the cancellation application, it is important to track the status of the cancellation application.
Steps for checking the status of the cancellation application are narrated hereunder-
STEP 1 – Visit site https://www.gst.gov.in/,
STEP 2 – Click the ‘Login’ icon and enter appropriate Login credentials,
STEP 3 – Navigate the following path-
Services > Registration > Track Application Status
STEP 4 – Enter ARN.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
