How to Voluntarily Cancel GST Registration

Voluntarily cancelling your GST registration is done by filing Form GST REG-16 on the portal, when your business has closed, your turnover has fallen below the threshold, or you are otherwise no longer liable to be registered. After cancellation you must file the final return in GSTR-10.

Taxpayers, GST officers, or legal heirs of a deceased registered individual can initiate the cancellation of a Goods and Services Tax (GST) registration. This guide details the steps for taxpayers to voluntarily apply for GST registration cancellation.

Steps for Voluntary GST Registration Cancellation Application

Step 1: Access the official GST portal by logging in with your credentials.

Step 2: From the main menu, proceed to ‘Services,’ then ‘Registration,’ and finally select ‘Application for Cancellation of Registration.’

Step 3: The ‘Application for Cancellation of Registration’ page presents three tabs. Confirm that the ‘Basic Details’ tab is active, as it will display pre-populated information. You can either manually input the ‘Address for Future Correspondence’ or choose the ‘Address Same as above’ option, which copies the principal place of business address. Afterward, click ‘Save’ to proceed with the form.

Step 4: Select the relevant reason for cancellation from the provided drop-down menu.

The system will then display additional options based on your selection:

1. Change in PAN Due to Business Constitution Alteration: Specify the registration cancellation date. Update the GSTIN of the acquiring entity in the ‘Details for Transfer, Merger or Change in Constitution’ section. The system will then automatically validate and display the transferee entity’s trade name.
2. No Longer Liable for Tax Payment:
   • Enter the effective date of cancellation for the registration.
   • Provide details on the stock’s value and corresponding tax liability at that date.
   • Include information about the tax liability that can be adjusted using the electronic cash ledger, electronic credit ledger, or both.
   • Upon submission, the specified amount will be debited from the relevant electronic cash or credit ledger.
3. Business Discontinuation or Closure:
   • Choose the precise date for registration cancellation.
   • Input the current stock value and its associated tax liability.
   • Detail any tax liability eligible for offset against funds in the electronic cash or credit ledger.
   • After the form is submitted, the specified sum will be subtracted from the applicable electronic cash or credit ledger.
4. Other Reasons:
   • Clearly state the specific reason for the cancellation.
   • Record the value of existing stock and its corresponding tax liability.
   • Provide information on tax liabilities that can be adjusted using balances in the electronic cash or credit ledger.
   • The entered amount will be deducted from the relevant electronic cash or credit ledger upon form submission.
5. Business Transfer Due to Amalgamation, Merger, Demerger, Sale, Lease, or Other Reasons:
   • Indicate the effective date for registration cancellation.
   • Input the GSTIN of the receiving entity in the ‘Details for Transfer, Merger or Change in Constitution’ tab. The system will validate these details and automatically populate the transferee’s trade name.

Step 5: Click ‘Save and Continue’ to finalize the second tab.

Step 6: Activate the verification tab. Check the box to confirm that all submitted information is accurate and correct. From the drop-down list, choose the authorized signatory’s name and specify the location.

Step 7: Complete the application form by signing with either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).

Step 8: Enter the One-Time Password (OTP) and click ‘Validate OTP’. A confirmation message will then be sent to your registered email address and mobile number.

The relevant tax officer will assess the taxpayer’s application and make a decision. To monitor the application’s status, go to ‘Services,’ then ‘Registration,’ and select ‘Track Application Status.’ Define the ‘Submission Period’ by entering the start and end dates, then click ‘Search.’

Frequently Asked Questions

Frequently Asked Questions (FAQ)

How do I voluntarily cancel my GST registration?

Log in to the GST portal and file an application for cancellation in Form GST REG-16, giving the reason and the effective date, along with details of stock and any liability.

Who can apply for GST cancellation?

The registered taxpayer can apply, and in the case of a deceased person the legal heir can apply. A GST officer can also initiate cancellation in certain cases.

What is the final return after cancellation?

After the registration is cancelled, you must file the final return in Form GSTR-10 within the prescribed time to report stock and settle any liability.

When should I cancel my GST registration?

You should apply when the business is closed or transferred, your turnover falls below the registration threshold, or you are no longer carrying on an activity that requires registration.