FAQs on Suo Moto Cancellation of GST Registration

Writer: CS Payal Kataria

Question 1: Can I surrender by GST registration Suo moto?
Ans: Yes

Question 2: Which is the relevant section and Rule deal with cancellation of registration?
Ans: Section 29(1) of CGST Act 2017 and Rule 20 of CGST Rules 2017

Question 3: What can be basic reasons and circumstances for surrender of registration?
Ans: Following can be the reasons:
• Discontinuance /Closure of business
• Ceased to be liable to pay tax
• Transfer of business on account of amalgamation, merger/demerger, sale, lease or otherwise disposed of etc.
• Change in constitution of business leading to change in Permanent Account Number
• Death of Sole Proprietor

Question 4: Which Form is prescribed to be filed for surrender of Registration?
Ans: File Form GST REG-16 available after log in at www.gst.gov.in

Question 5: Is there any fee to be paid to Government for applying for surrender of registration?
Ans: No

Question 6: Any obligation after filing Cancellation of registration in form REG 16?
Ans: File Final Return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed.

Question 7: Mr. A registered person under GST, discontinue his business on 1st August 2018. Within what time period Mr. A can apply for cancellation of registration?
Ans: Within 30 days from the event i.e 1st August 2018

Question 8: Will there be requirement to provide information related to stock?
Ans: Provide details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof

Question 9: If I applied for voluntary registration on 1st October 2018, can I apply for cancellation of registration before one year ?
Ans: Yes, See Notification No 3/2018 Central Tax

Question 10: Any obligation to file return after applying for cancellation of registration and before approval of cancellation?
Ans It has been clarified now that there is no obligation to file GST monthly/Quarterly return after applying for cancellation.

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this writeup in the respective scenarios. While due care has been taken in preparing this writeup, the existence of mistakes and omissions herein is not ruled out. No part of this writeup should be distributed or copied (except for personal, non-commercial use) without our written permission.

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