The process for cancelling your GST registration in India can vary depending on whether you initiated the cancellation request or the tax authorities are proposing it. Here’s a breakdown of both scenarios:

Voluntary Cancellation:

Initiating the request:

1. Eligibility: You can apply for voluntary cancellation if you permanently discontinue your business, transfer it, merge with another entity, or face any other valid reason for ceasing taxable activities.
2. Formalities: File Form GST REG-16 online through the GST portal, providing reasons for cancellation and necessary documents like GST returns filed to date and final return (GSTR-10).
3. Processing: The proper officer reviews your application and may seek clarification or additional documents.
4. Order of cancellation: If satisfied, the officer issues an order for cancellation in Form GST REG-19 within 30 days of receiving your application.

Following cancellation:

• You are no longer liable to file GST returns or pay any taxes.
• You must surrender your GST registration certificate to the tax authorities.
• You cannot resume taxable activities under the same PAN for two years without fresh registration.

Cancellation by Tax Authorities:

Reasons for initiation:

• Non-filing of GST returns for six consecutive tax periods.
• Supplying incorrect information in your registration application.
• Engaging in fraudulent activities or tax evasion.
• Ceasing business operations without informing the authorities.

Process:

1. Show cause notice: The tax officer issues a show-cause notice in Form GST REG-17 explaining the potential cancellation and requesting your response within seven days.
2. Reply to notice: You can submit a reply in Form GST REG-18 justifying your actions or presenting mitigating circumstances.
3. Decision by officer: The officer reviews your reply and may cancel your registration in Form GST REG-19 if convinced of non-compliance.
4. Appeal process: You can appeal the cancellation order within 30 days under provisions of the GST Act.

Additional points:

• You can withdraw your voluntary cancellation request before the officer makes a decision.
• Cancellation for non-filing can be reversed if you file all pending returns with interest and penalty within a specified timeframe.
• Cancelling GST registration does not absolve you from any previous liabilities or legal actions taken for non-compliance.