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How to surrender GST registration online?

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When registration under Goods and Services Tax can be surrendered?

The taxpayer or legal heir may file an application for surrender of GST registration in the following circumstances:

  • Discontinuance of business or closure of business
  • 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 6 months
  • Taxable person no longer liable to be registered under GST Act
  • Death of sole proprietor

Extract of Board resolution for the surrender of GST registration

The Board of directors of a Company by passing a Board resolution may authorize a person to apply for cancellation of GST registration. A sample of the Board resolution is given below:


"RESOLVED THAT (Name of Director/Officer), (Designation) be and is hereby authorized to apply to the appropriate authority for surrender of GST registration of the company (GSTIN............) for its unit......... as there is a change in the constitution of the business resulting in non-requirement of registration under Goods and Services Tax.

FURTHER RESOLVED THAT a final return as prescribed be filed with the appropriate authority and that (Name of the Director/Officer), (Designation) be and is hereby authorized  to do all such acts, deeds and things as may necessary to give effect to the foregoing resolution."


Procedure to surrender GST registration online

Step 1: Visit GST official website

Step 2: Enter login credentials

Step 3: Navigate to the Services > Registration > Application for Cancellation of Registration option.

 

Application for surrender of GST registration 01

 

Step 4: Three tabs will be displayed on this screen namely,

  • Basic Details
  • Cancellation Details
  • Verification

The first tab contains pre-filled information. In the section, "Address for Future Correspondence", either fill in details manually or click the option of "Address same as above".

 

Application for surrender of GST registration 02

 

Step 5: Click the "SAVE & CONTINUE" button.

 

Application for surrender of GST registration 03

 

Step 6: In the "Cancellation" tab, select the reasons for cancellation from the dropdown and enter the date of cancellation in the respective field.

 

Application for surrender of GST registration 04

 

Step 7: Once you will fill in the complete details in the "Cancellation details" tab, the next "Verification" tab will get activated.

On this screen,

  • Check the verification statement box to declare that the information given by you is true and correct and that nothing has been concealed therefrom.
  • Select the name of the authorized signatory from the drop-down.
  • Enter the place of making this declaration.

 Application for surrender of GST registration 05

 

Step 8: Submit your application either with DSC (Digital signature certificate) or EVC (Electronic verification code) option.

 

Application for surrender of GST registration 06

 

Step 9: Enter "OTP" and click the "VALIDATE OTP" button.

 

 Application for surrender of GST registration 07

 

  • On successfully filing the application for surrender of GST registration, the system will display a confirmation message.
  • A confirmation message will also receive on your registered mobile phone number and e-mail-ID.
  • Finally, the proper officer will review your application before canceling your GST number.

Recent updates related to GST registration

 

November 2021

1. Functionality has been introduced on the GST portal for taxpayers to withdraw their application for cancellation of registration (Form REG-16) provided no action has been initiated by the tax officer against their application.

2. Now the effective date of suspension of a taxpayer is also displayed on the portal when his profile is accessed using "Search Taxpayer" functionality.

24th September 2021

An applicant shall undergo Aadhaar authentication for filing an application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23. (Notification No. 35/2021–Central Tax)

Under Aadhar authentication, an authentication link is sent on the registered mobile number and email id. On clicking the verification link, a window for Aadhaar Authentication will open where an applicant needs to enter Aadhaar number and the OTP received on the mobile number linked with Aadhaar.

29th July 2021

The taxpayers who have been newly registered on the GST portal but have not yet furnished their Bank Account details, may login and update the same through the Non-core amendment. 

28th May 2021

The last date for filing application for revocation of canceled GSTIN falling between 15th April 2021 to 29th June 2021 extended to 30th June 2021.

5th March 2021

The search ARN functionality for registration on the common portal has been enhanced for taxpayers.

31st January 2021

(i) SEZs while applying for GST registration will have to provide the validity period as per the letter of authorisation (LOA).

(ii) Aadhaar authentication has been implemented on the Common portal for existing taxpayers.

 

Recommended


Suo Moto Cancellation of GST registration


How to file a reply suo moto cancellation notice in GST?


Cancellation of registration under GST


Revocation of cancelled GST registration


 

Frequently asked questions (FAQs)

While filing the application for surrender of registration, the taxpayer needs to fill the value of stock and corresponding tax liability on the stock, and accordingly offset the liability (tax payable) from Electronic Cash Ledger / Electronic Credit ledger equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished goods or finished goods held in stock or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed.

In case of capital goods or plant and machinery, the person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery, whichever is higher.

In case of Nil or no amount to be entered by taxpayer in value of stock and tax payable section, the taxpayer can still submit the form.

Yes, it is mandatory to give reasons for cancellation of registration in the "Reason for Cancellation" field.

No, you cannot submit application for surrender of registration if the tax official has already initiated the Suo-Moto cancellation of registration.

When the status of your GSTIN is showing as “Suspended” status, you can perform certain activities on GST Portal like filing Appeal, making payment, filing for Refunds, reply to Assessment/Recovery/ Enforcement related orders/ notices, even make non-core amendment etc..

However, once GSTIN is suspended:

  • During the suspension status, taxpayer will be allowed to file return or upload invoices only for the period before the registration was suspended.
  • Taxpayer will not be able to file core amendment application till the time registration is suspended. However, email address and mobile number can be updated till dues/ refund are cleared.


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CA Anand Singh

CA Anand Singh

I am a practising Chartered Accountant with 6 years of experience in Direct and Indirect Taxation, FEMA, Corporate Law and Audit etc.