How To Surrender GST: In India, everybody’s focus is on GST in the present situation because of its complicated and unique rules. Many people in India are still confused on matters like the process for GST registration, filing the return forms, tax challan, e-way bill and different forms which are related to GST. But among all these problems, the major issue faced by people is How to surrender GST after registration? and the place where one can surrender the GST registration certificate
Some people apply for GST by mistake and get the GST registration certificate form; thus, they become worried and think of ways to return the certificate which has been delivered to him/her by mistake. Most people are unaware of the time limit for surrender of GST registration certificate surrendering process. Through this article, we will discuss the process in a detailed manner so that one can get a clear idea.
One can surrender the GST registration certificate only if his/her annual turnover is less than 20 lakhs ( total sale and unregistered purchase). Application for surrendering GST certificate can be filed only after one year of GST registration and not one day before that. Read on the Article to know more about GST Cancellation Fees, GST Late Fees Cancellation and GST Cancellation Charges.
CGST Rule for Cancellation Of Registration
The registration that has been granted to an individual can get cancelled if the individual:
- is not involved in any business at the location mentioned in the registration form. The declared location of the business in the form is considered fake.
- Takes the liberty to issue a bill without conducting any supply of goods and services. This action is considered to be a violation of the provisions in the GST act.
- His/her actions violates or breaks the provisions mentioned in section 171 of the GST Act or the rules made thereunder.
Rules for Cancelling/Surrendering GST
The rules that have been followed while cancelling or surrendering the GST registration certificate form by a particular individual, business, or the government:
- When the proper officer (who has been assigned for executing the job of approving cancellation) is satisfied with all the claims produced before him to support the demand of cancelling the GST registration done of an individual or a business entity, if the proper officer approves the claim, then the form is liable to get cancelled under section 29. Before approving the claim, he/she will draft notice and direct the individual or the business entity to show the cause of his actions within a period of seven days from the date of issuing notice. The individual or the business entity must explain why their registration shall not be cancelled.
- The reply to the proper officer’s cause notice has to be forwarded within the specified period mentioned in the sub-rule. The cause notice issued under sub-rule(1) must be furnished in FORM REG-18.
- When a person has taken the liberty to draft an application for re registration of gst after cancellation of his/her registration is no longer liable to remain registered, and his/her registration must get cancelled by the proper officer as soon as possible. The proper officer is responsible for issuing an order in FORM GST REG-19 within a period of thirty days from the date of submission of cancellation application under sub-rule (1) of rule 20. The proper officer will decide a particular date from when the individual’s registration will be considered cancelled. Before that, the individual must clear all the tax debts that are pending. Only after clearing all the debts his/her registration can get cancelled. The individual needs to pay the pending penalties and the amount which he/she is liable to pay because it is mentioned in sub-section (5) of section 29.
- Suppose the reply forwarded by the individual for the show cause notice is considered to be satisfactory and sounds believable to the proper officer. In that case, he/she is responsible for dropping the proceedings and passing an order in FORM GST REG-20.
- The provisions in sub-rule (3) are applied to the legal heirs of a deceased proprietor. This happens only in the case where the proprietor has submitted a cancellation certificate before dying.
Ways to Cancel or Surrender GST Registration
GST registration can get cancelled or surrendered in the following three ways:
- GST Getting Surrendered By The Registered Person Himself
- GST Getting Surrendered By The GST Officer
- GST Getting Surrendered By The Legal Hirer
GST Getting Surrendered By The Registered Person Himself
A registered person is liable to apply for cancellation of his/her registration only if he satisfies the following.
- His/her annual turnover is less than 20 lakhs, including registered and unregistered incomes.
- The business of the individual has stopped its operations and is planning for discontinuation.
- Uncertain death of the proprietor can force the business to shut down.
- When the business of an individual is no longer liable to the GST according to the rules issued by the government.
GST Getting Surrendered By The Gst Officer
GST officer has the authority to cancel the registration of an individual or a company if they fall under the following conditions:
- Violation of GST policies or rules by a particular organization.
- When a registered person has stopped filing the tax return for the last three years.
- When a registered company has not generated any income and is not involved in any type of business for the last six months after getting registered for GST.
- Some other issues can also be the cause of cancellation.
GST Getting Surrendered By The Legal Hirer
A legal hirer has all the authority to apply for the cancellation of the registration after the death of the proprietor. This is only possible in a sole proprietorship business.
Steps for Cancellation of GST Registration
Every individual residing in India and has done GST registration has the doubt How to surrender GST? So to clear out all your doubts, here are the detailed steps which one need to follow for cancelling his/her GST registration:
- Step – 1: Log in to the official website of GST and then click on the option Cancellation of Provisional Registration.
- Step – 2: The cancellation webpage opens on your computer.
- Your GSTIN and the name of the business will appear on the website automatically.
- You then need to give a reason for the cancellation of registration.
- Step – 3: The website will ask if you have issued any tax invoices in that particular month.
- Step – 4: Then fill up the blank places with the details the website is asking for in order to move forward with the process.
- Step – 5: Finally, you need to sign off with the EVC with you are a proprietorship or partnership. LLPs and companies must sign off with a DSC.
Conclusion on Surrender of GST Registration
GST is an important matter for all who are into business or for those who earn a good amount every year. So it’s important for them to know all the processes and rules related to GST. From this article, we understand the rules, ways of GST cancellation process, fees, letter format, form and how to surrender GST. This might have helped a lot of individuals.