Understanding the Process of GST Registration Cancellation: Key Insights from Circular No. 69/43/2018-GST

02March

Understanding the Process of GST Registration Cancellation: Key Insights from Circular No. 69/43/2018-GST

<p class="break-word my-4 text-sm first:mt-0 only:my-0" style="background-color:rgb(37,40,45);border-style:solid;border-width:0px;color:rgb(227,229,232);font-family:'ui-sans-serif', '-apple-system', BlinkMacSystemFont, 'Segoe UI', 'Helvetica Neue', Helvetica, 'Apple Color Emoji', Arial, sans-serif;font-size:14.222px;font-style:normal;font-weight:400;line-height:1.1883;margin:1rem 0px;word-spacing:0px;">The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 69/43/2018-GST to provide clarity on the process of cancelling GST registration. This circular is crucial for businesses looking to discontinue their GST registration due to various reasons such as business closure, transfer, or change in business constitution. Here are the key highlights:<ol><li>Circumstances for Cancellation: The circular outlines specific circumstances under which a taxpayer can apply for cancellation of GST registration. These include business discontinuance, transfer due to amalgamation or merger, change in business constitution, and other specified reasons.</li><li class="my-2" style="border-style:solid;border-width:0px;margin-bottom:0.5rem;margin-top:0.5rem;">Application Process: Taxpayers must submit their application for cancellation using FORM GST REG-16 on the common portal within 30 days of the event warranting cancellation. The application must include details such as the reason for cancellation, date from which cancellation is sought, and details of stock and tax payable.</li><li class="my-2" style="border-style:solid;border-width:0px;margin-bottom:0.5rem;margin-top:0.5rem;">Final Return Requirement: Section 45 of the CGST Act mandates that every registered person whose registration is cancelled must file a final return in FORM GSTR-10 within three months of the cancellation date. This ensures that any outstanding liabilities are settled.</li><li class="my-2" style="border-style:solid;border-width:0px;margin-bottom:0.5rem;margin-top:0.5rem;">Handling of Applications: The proper officer is required to process the cancellation applications within 30 days, except in cases where the application is incomplete or the new entity in a merger has not registered. The effective date of cancellation cannot precede the application date.</li><li class="my-2" style="border-style:solid;border-width:0px;margin-bottom:0.5rem;margin-top:0.5rem;">Liability and Compliance: The cancellation of registration does not absolve the taxpayer from any liabilities incurred before or after the cancellation date. Taxpayers must ensure compliance with all GST obligations up to the date of filing the final return.</li><li class="my-2" style="border-style:solid;border-width:0px;margin-bottom:0.5rem;margin-top:0.5rem;">Trade Notices and Implementation: The circular advises issuing trade notices to publicize its contents and encourages stakeholders to bring any implementation difficulties to the Board's attention.</li></ol><p class="break-word my-4 text-sm first:mt-0 only:my-0" style="background-color:rgb(37,40,45);border-style:solid;border-width:0px;color:rgb(227,229,232);font-family:'ui-sans-serif', '-apple-system', BlinkMacSystemFont, 'Segoe UI', 'Helvetica Neue', Helvetica, 'Apple Color Emoji', Arial, sans-serif;font-size:14.222px;font-style:normal;font-weight:400;line-height:1.1883;margin:1rem 0px;word-spacing:0px;">This circular aims to streamline the cancellation process and ensure uniformity in its implementation across different jurisdictions. Businesses planning to cancel their GST registration should carefully follow the guidelines to avoid any compliance issues.<p class="break-word my-4 text-sm first:mt-0 only:my-0" style="background-color:rgb(37,40,45);border-style:solid;border-width:0px;color:rgb(227,229,232);font-family:'ui-sans-serif', '-apple-system', BlinkMacSystemFont, 'Segoe UI', 'Helvetica Neue', Helvetica, 'Apple Color Emoji', Arial, sans-serif;font-size:14.222px;font-style:normal;font-weight:400;line-height:1.1883;margin:1rem 0px;word-spacing:0px;"><a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-69-new.pdf">circular-no-69_new</a>

Understanding the Process of GST Registration Cancellation: Key Insights from Circular No. 69/43/2018-GST

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