When Can your GST Registration be Cancelled

We know that registration under GST is perpetual and does not require any renewal. However, there are scenarios when a person’s registration can be cancelled by an assessing officer. Let us understand the scenarios of GST registration cancellation.
 

Scenarios of GST registration cancellation by an officer

The business has been discontinued or transferred fully, or amalgamated with another entity, demerged or disposed of

There is a change in the constitution of the business

A registered person has failed to comply with the GST provisions

A composition tax payer has not furnished returns for 3 consecutive quarters

A regular dealer has not furnished returns for a continuous period of 6 months

A person who has taken voluntary registration has not commenced business within 6 months from the date of registration

A person does not conduct business from the declared place of business

A person issues an invoice or bill of supply without actually supplying goods or services

Registration has been obtained by fraud, wilful misstatement or suppression of facts

The benefit of input tax credit or reduction in rate of tax has not been passed on to consumers in the form of reduction in prices

Liability when registration is cancelled
A person whose registration is cancelled should either reverse the input tax credit availed on inputs in stock or pay tax equal to the input tax credit availed.

Return to be filed in case of GST registration cancellation

Return

Due Date

Details to be furnished

Form GSTR-10

Within 3 months after date of order of cancellation

Furnish details of inputs and capital goods held, tax paid and payable.

Cancellation of registration by an officer due to non-compliance with the GST provisions is a serious and damaging event for any business. Registered persons should avoid these scenarios where their registration is forcefully cancelled.