GST Cancellation means Cancellation of GST Registration that the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST. GST Cancellation can be done in two ways:
BY JURISDICTIONAL OFFICER
BY TAXABLE PERSON / LEGAL HEIR
OF TAXABLE PERSON
If the proper officer has reasons to cancel the registration of a person then the said officer can do so. The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,–
Any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration within thirty days from the date of service of the cancellation order and the proper officer may, revoke cancellation of the registration or reject the application after giving an opportunity of being heard.
Application for revocation cannot be filed if the registration has been cancelled because of the failure to file returns. Such returns must be furnished first along with payment of all dues amounts of tax, interest & penalty.
Any person / entity who has obtained Registration under GST Act, 2017 can also apply for cancellation of the Registration, if such person is not liable any more for registering under the said Act. One may apply for cancellation of registration in following case:
Once Registered person has applied for cancellation of registration, such taxable person should not stop filing the returns after applying for cancellation till the cancellation it become effective from a date determined by the officer and notified to the taxable person.
The cancellation of registration shall not affect the liability of the person to pay tax and other dues or to discharge any obligation under this Act or the rules made for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
Every registered person have to pay off the net liability upto the day immediately preceding the date of such cancellation.