Question 1

When should I cancel my GST registration?

Accepted Answer

You should cancel your GST registration if your business has permanently closed, your annual turnover has fallen below the mandatory threshold and you no longer make inter-state supplies or exports, your business has been transferred or merged, or you have obtained a fresh GST registration under a different legal entity.

Question 2

What is the difference between voluntary and suo motu cancellation?

Accepted Answer

Voluntary cancellation is applied for by the registered person using Form REG-16. Suo motu cancellation is initiated by the GST officer when a taxpayer has not filed returns for a continuous period or has violated GST provisions. BSP Associate handles voluntary cancellation applications.

Question 3

What is Form GSTR-10 and why is it required?

Accepted Answer

GSTR-10 is the final return that must be filed within 3 months of the date of the cancellation order or the effective date of cancellation, whichever is later. It requires you to declare closing stock and pay tax on ITC availed on that stock. Failure to file GSTR-10 can result in a notice and penalties.

Question 4

Do I need to reverse ITC when cancelling GST?

Accepted Answer

Yes. At the time of cancellation, you must reverse ITC on any closing stock of inputs, semi-finished goods, finished goods, and capital goods on which ITC was availed. The ITC reversal amount or the tax on stock value — whichever is higher — must be paid in cash before the cancellation is processed.

Question 5

Can I re-register for GST after cancellation?

Accepted Answer

Yes. If your business becomes liable for GST again in the future, you can apply for a fresh GST registration. A previously cancelled GSTIN cannot be reactivated, but you can obtain a new GSTIN through a fresh registration application.

Question 6

How long does GST cancellation take?

Accepted Answer

If all pending returns are filed and the application is complete, the GST officer typically processes the cancellation within 30 days. If there are pending liabilities or the officer issues a show cause notice (Form REG-17), additional time may be required to respond and resolve.

GST Cancellation / Surrender

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