Tax 81 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.
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.
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 reasons for surrendering GST registration:
If a business ceases operations or gets struck off, the registration under GST must be surrendered to avoid ongoing compliance requirements and potential penalties.
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.
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).
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.
TDS return filing applies to different types of payments, including salary and non-salary transactions. The type of return depends on the type of payment and the category of the deductee. Below are the different types of TDS returns and their applicability:
| 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 finalized. However, the aggrieved taxpayer can appeal against the order of GST Cancellation. | Allowed upon reactivation request, provided all pending GST returns are filed. | Not allowed after voluntary surrender. |
| Reason | Non-compliance, fraud, inactivity, or non-filing of GST returns | Temporary suspension by authorities | Business closure, voluntary opt-out |
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:
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.
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.
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.
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.
The correct documentation is essential for the successful process of the GST Surrender. Below are the key documents required:
| Requirement | For Cancellation | For Surrender |
|---|---|---|
| PAN & Aadhaar of Business Owner | Required | Required |
| GST Registration Certificate | Required | Required |
| Last GST Return Filed | Required | Not Required |
| Business Closure Proof (if applicable) | Required | Not Required |
| Tax Payment Clearance Certificate (if required) | May be required | Not Required |
| CA Certified Turnover Below GST Threshold | Not Required | Required |
| Declaration of Voluntary Surrender | Not Required | Required |
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
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.
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.
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.
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.
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.
GST cancellation means termination of GST registration when it is no longer required. This may be initiated voluntarily by the taxpayer or enforced by authorities due to non-compliance, fraud, or inactivity.
GST surrender is a voluntary decision made by the taxpayer to discontinue GST registration. It is usually done when the business turnover falls below the threshold limit or when operations are ceased permanently.
A business may cancel or surrender its GST registration due to various reasons, including business closure, change in business structure, voluntary withdrawal due to low turnover, or regulatory enforcement by GST authorities.
The required documents include PAN, Aadhaar, GST registration certificate, last GST return filed, business closure proof, and financial statements. Additional documents may be needed depending on the reason for cancellation/surrender.
The total process generally takes 15-30 days, depending on the verification and compliance requirements. Timely submission of documents and responses to queries help speed up approval.
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