How to Surrender GST Number?

At the present time, GST is the most discussed topics in India. Most of the people are confused about the registration method, filling the return forms, e-way bill, tax challan, other categories of GST and some people don’t know how to Surrender GST Number. It’s also obligatory sure other persons including e-commerce operators, UIN holders, persons deducting TDS/TCS, etc. of these entities at regular intervals need to file GST returns. 

Who can cancel the GST Registration?

 Central Tax Authority has the power to cancel the GSTIN issued to the taxpayer by Cancelling the GST Registration. With the facilitation of GSTIN Cancellation, the taxpayer will not be the authorized individual anymore and irrecoverable from him/her as he/she is not a registered person under Goods and Services Tax Act. 

There are several cases in which GST is necessary to get a cancellation. But in present time a significant issue is growing on how to surrender GST Registration Certificate. A registered taxpayer who has a GST registration can surrender GST registration by filing a return in the form GSTR-10. This return IN FORM GSTR- 10 is known as final return. Most of the individuals or entities who supply goods or services or both in India have a GST registration number. 

The main cause for surrendering of GST registration is a shutting down of business, change in the constitution and transfer of business. Surrendering the GSTIN will reduce the level of compliances for the taxpayer, as the taxpayer does not have to file GST return monthly. 

Another question that is common in GST taxpayers is that, what will be the process if someone has applied for GST by mistake and obtained a GST certificate from the authority, or what is the process to surrender GST number if applied by mistake? So, the answer is, anyone can surrender GST registration when the annual turnover is less than INR 20 lakhs. Also, application for surrendering GST registration should be made only after one year of obtaining the GST registration in case of intentional registration. 

Cancellation or Surrender of GST registration

 GST Registration can be cancelled or surrender through the following three ways: 

1. Surrender GST Registration (Registered person):

A registered individual can apply for cancellation or surrender of GST Registration: 

• If the turnover is less than INR 20 lakhs
  • If the business has been discontinued
  • Death of the owner in case of sole proprietorship
  • If the business entity is no longer liable to pay GST (like when an entity has obtained registration for the sake of inter-state trade but soon after government relaxed the policies that GST registration is not obligatory for inter-state trade)
  • Because the owner is shutting down the business or leaving the profession.
  • Or any other concern.

2. Surrender GST Registration (GST Officer): 

GST officer has the authority to cancel the registration if the entity falls under the following conditions: – 

• If the entity has violated any law concerning GST.
• The registered person has failed to file tax for three successive years.
• If the registration is obtained through fraud methods.
• If the registered business entity has not produced any business from the previous six months after GST registration.
• Or any other concern.

3. Surrender GST Registration (Legal Hirer):

 A legal hirer can also cancel or surrender GST Registration after death of the owner in case of a sole proprietorship. 

Steps for Cancellation of Provisional GST Registration: 

If anyone wants to cancel or surrender GST Registration then the entity has to follow the below mentioned steps:– 

• Step 1

 Log in to the official online portal of GST and select the “Cancellation of Provisional Registration”. 

• Step 2
  • When the cancellation page opens the GST number and name of the business will appear on the screen and after that the entity has to submit a reason cancellation of GST registration.
• Step 3

 The entity will be asked if it has issued any tax invoices throughout the month. 

• Step 4

 The entity has to simply fill the details of authorized signatories and place. 

• Step 5

 In the final step, sign off with EVC whether the entity is a partnership or a proprietorship. Limited Liability Partnerships & Companies must necessarily sign with Digital Signature Certificate.  

Conclusion

Anyone can surrender GST registration when the annual turnover is less than INR 20 lakhs. Central Tax Authority has the power to cancel the GSTIN issued to the taxpayer by Cancelling the GST Registration. With the facilitation of GSTIN Cancellation, the taxpayer will not be the authorized individual anymore and irrecoverable from him/her as he/she is not a registered person under Goods and Services Tax Act.