GST Registration Surrender | Process and Documents

Application for Surrender of GST Registration Online

Setindiabiz TeamSeptember 27, 2024

The surrender of GST Registration online involves a taxpayer or his legal heir giving up their GST number before the closing or restructuring of their business. The process is quite simple. An application gets filed to the GST department with business and cancellation details. After being approved, the department cancels the registration permanently.

BRIEF SUMMARY

Surrendering GST Registration can help avoid the burden of paying taxes and filing GST returns. However, if done for the wrong reasons, it may lead to the business losing credibility in the eyes of customers and stakeholders. So, it’s necessary that the surrender is planned for the right reasons and is completed through the right process.

What is GST Registration Surrender?

GST registration surrender is the process where a taxpayer or his legal heir cancel GST Registration willingly to avoid paying taxes and filing GST returns. Though it is not compulsory, the taxpayer should be prompt in surrendering GST registration when the business is closing down or changing its identity to a new entity. Not surrendering GST registration in the right situation can lead to its forceful cancellation by the tax officers.

Reasons for Surrender of GST Registration

There can be several reasons for the surrender of GST Registration. The applicant must choose from the available options in the application form. Here are the common ones:

Change in the constitution of business leading to a change in PAN.
Ceased to be liable to pay tax
Closure of Business
Transfer of Business due to Merger, Demerger, Amalgamation
Death of Sole Proprietor

Who can Surrender GST Registration Online?

GST Surrender Registration is both a voluntary and an involuntary process. If the owner of the GST-registered business wants to surrender the GST number online, he can apply for it stating the right reasons. Similarly, tax officers can also take a suo moto action on cancelling a GST registration on valid grounds. In either case, the impact will be the same. The business will not be eligible to pay GST or file GST returns.

How to File Application for Surrender of GST Registration?

Surrendering GST Registration is an online process where the taxpayer files an application to the GST Department in Form GST REG 16. The form contains all information about the business, reason for surrender and the details of the new entity, in case it’s being restructured. Here are the steps to be followed.

1. Access the GST Surrender Application

To access the GST surrender application, the taxpayer must log in to the GST website with correct User ID and password.

2. Fill Out the Application

The next step is completing the application with basic details of the business, reason, and the date of surrender. Additional details like GST number or stock value may be asked in certain situations.

3. Verification

The application must be verified using a DSC or EVC. DSC is compulsory if the applicant is a company or LLP. Single taxpayers like Sole proprietors may use EVC.

4. Submit the Application

The completed application can be submitted on the GST website without any surrender charges or cancellation fee.

GST Surrender Required Documents & Forms

Forms & Documents	Purpose
GST REG-16	Application for Surrender of GST Registration
GST REG-17	GST cancellation notice from tax officers.
GST REG-18	Reply to GST cancellation notice within 7 days.
GST REG-19	GST Cancellation Order Issued by the Department within 30 days from application date.
GST REG-20	Notice informing that no cancellation proceedings will be initiated
Digital Signature Certificates	Required for verification of GST Cancellation Application for Companies and LLPs.

Can a Surrendered GST be Restored?

A surrendered GST can be restored only if it was forcefully cancelled by the tax authorities, except in case of cancellation due to non-filing of GST Returns. For this, the taxpayer has to make an application to the GST Department in form GST REG-21, within 30 days from the issue date of cancellation order. If the application gets approved, the order will be revoked within 30 days from the application date.

Surrendering the GST number online can help a taxpayer get rid of unnecessary compliance burden in times of financial crisis or uncertainty. The application is filed free of cost. However, the effect is permanent as a surrendered GST number cannot be revived again. So, it is advisable to go for this process only when the business is shutting down or is being changed to a new structure.

Conclusion

FAQs

Q1: Can I file the application for surrender of GST Registration offline?

No, GST surrender registration is an online process and the application is submitted on the GST website only.

Q2: What are the charges for GST surrender online?

You can surrender GST number online for zero charges.

Q3: Can I restore a surrendered GST?

No, a surrendered GST can never be restored. However, if it’s been forcefully cancelled, you can request the revocation of the cancellation order on valid grounds.

Q4: Can GST registration be surrendered after the taxpayer’s death?

Yes. The legal heir of the business can apply for GST registration, in case the registered taxpayer has died.

Q5: Is DSC mandatory for GST surrender application?

DSC is mandatory for GST surrender application only when the applicant is a company or LLP.

2 thoughts on "Application for Surrender of GST Registration Online"

Rakhi says :
September 12, 2024
Such a great explanation for GST Registration surrender. Thanks

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Harish says :
July 16, 2024
Your explanation and reasons of gst registration surrender are very helpful and informative. I find it is so helpful personally and will definitely share this written piece with my friends.

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