Cancel or Surrender Your GST
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Setindiabiz helps in making an application for the cancellation of the surrender of the GST Registration if the taxpayer no longer needs to be registered under the GST. We also extend our services to reconcile the GST liability and for filing the GST final return after the cancellation of GST.
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Cancel or Surrender Your GST Registration Easily
GST Cancellation or Surrender is the legal process of closing the GST registration when it is no longer required. The cancellation of GST may be initiated voluntarily by the taxpayer or mandated by the authorities due to non-filing of the GST Return or any other non-compliance with the GST Law. A well-structured cancellation or surrender ensures businesses fulfil their obligations without future liabilities. Therefore, it is important to understand the stepwise process, eligibility, and documentation that are necessary for GST Cancellation or Surrender. Setiniabiz helps the taxpayer streamline the entire process of GST Surrender or Cancellation and post-cancellation compliance, such as filing the Final GST Return in Form GST-10.
Key Features
- Expert Assisted Cancellation
- Fast Online Processing
- GST Liability Reconciliation
- Document Drafting Assistance
- All India Affordable Services
- Post-Cancellation Guidance
Eligibility or Reasons for GST Surrender
GST registration can be cancelled or surrendered based on specific conditions. Businesses must meet certain criteria before proceeding, whether initiated voluntarily by the registered taxpayer or enforced by authorities. Below are four primary eligibility categories or the reasons for surrendering the GST Registration:
Business Closure
If a business ceases operations or gets struck off, the registration under the GST of such closed business must be surrendered to avoid ongoing compliance requirements and potential penalties.
Voluntary Surrender
A taxpayer whose turnover falls below the GST threshold limit or whose business is exempt from GST may choose to surrender the registration to reduce compliance burdens.
Regulatory Mandate
Authorities such as the GST Commissioner may cancel GST registration due to fraud, repeated non-compliance, or failure to file returns for an extended period (generally a gap of six months).
Business Restructuring
Mergers, acquisitions, business conversions, or any significant structural changes may necessitate the surrender of GST registration as the resulting entity seeks a separate GST Registration.
Comparison: GST Cancellation vs. Suspension vs. Surrender
| Feature | GST Cancellation | GST Suspension | GST Surrender |
|---|---|---|---|
| Legal Status | Permanent termination of GST registration | Temporary hold with possible reactivation | Voluntary de-registration by the taxpayer |
| Return Filing | Final Return (GSTR-10) required | Returns may still be required if reactivated | Final Return (GSTR-10) required before completion |
| Revocation | Not allowed once finalised. However, aggrieved taxpayer can appeal against the order of GST Cancellationg | Allowed upon reactivation request, provided all pending GST Return is filed. | Not allowed after the voluntary surrender |
| Reason | Non-compliance, fraud, inactivity or non-filing of GST Return | Temporary suspension by authorities | Business closure, voluntary opt-out |
Timeline for GST Cancellation
The time required for the approval of GST cancellation or surrender application would depend on several factors and would be different for each case. The applications with no transaction or where nil gst returns were filed earlier will get processed faster than those of an active business. Generally, the timeline is as follows:
1-2 Days
GST Cancellation Application Filing
The GST surrender application is filed online at the GST portal. Once the applicant is ready with the necessary documents and reconciliation of GST dues and returns, filing the GST surrender application is quick and can be completed within 1-2 days.
7-15 Days
Processing by GST Authorities
The GST authorities review the application for GST Surrender and may raise objections or seek clarification from the applicant. Once the clarifications are provided, the GST department proceeds with approval.
15-30 Days
Overall Time Needed
Depending on the complexity of the case, document verification, and any clarifications sought by the authorities, the entire process may take anywhere between 15 to 30 days.
30 Days
Final Return Filing
Within 30 days of the approval of the GST cancellation/surrender application, the taxpayer must file a final gst return in the prescribed GSTR-10. The purpose of the GST final return is to settle all outstanding GST liabilities and formally close the GST registration.
Documents Required
The correct documentation is essential for the successful process of the GST Surrender. Below are the key documents required:
For Cancellation
- PAN & Aadhaar of Business Owner
- GST Registration Certificate
- The last GST Return Filed
- Business Closure Proof (if applicable)
- Tax Payment Clearance Certificate (if required)
For Surrender
- PAN & Aadhaar of Business Owner
- GST Registration Certificate
- CA Certified Turnover Below GST Threshold
- Declaration of Voluntary Surrender
Stepwise Process of GST Cancellation
Step - 1
Log in to GST Portal
Before you begin filing the application for GST Cancellation, ensure that all previous GSTR-1 and GSTR 3B Returns are filed correctly and that you have made the necessary reconciliation to ensure that there is no GST liability. Now login to the GST portal at www.gst.gov.in and navigate to the 'Services' section under 'Registration' tab
Step - 2
Select Cancellation/Surrender Option
Under the 'Registration' menu, choose the 'Application for Cancellation/Surrender.' tab and then select the appropriate reason for making the GST Cancellation from the drop-down list provided on the portal.
Step - 3
Provide Reason for Cancellation/Surrender
The applicant has to furnish specific reasons for making the application to cancel or surrender the GST, the documents to be uploaded in the next step shall also depend on the reasons selected such as business closure, turnover reduction, restructuring, or compliance issues.
Step - 4
Submit Required Documents
Submitting the necessary documents is an essential part of the GST cancellation or surrender process. The required documents typically include a reconciliation statement, identity and address proof of the business owner, updated contact details of the proprietor or director, proof of business closure (if applicable), and any other supporting information requested by the authorities.
Step - 5
Verification and Approval
Once the application for GST surrender along with required documents are submitted, the GST authorities shall examine the application thoroughly and then may ask for clarification or further document submission, after being satisfied, the commissioner of the GST shall approve the application for GST Cancellation.
Step - 6
File Final GST Return
After receiving approval for cancellation or surrender, the taxpayer must complete the final GST return filing. The GSTR-10 return must be submitted within 30 days of approval. This step ensures that any outstanding liabilities are settled, the input tax credit is reversed if required, and the GST registration is officially closed.