- The officer may on his own motion cancel registration in following situation (section 29 of CGST)
a. In case of death of person
b. Discontinue of business
c. Transfer of business (amalgamation, demerger, death of proprietor,
d. There is change in constitution of business
e. Taxable person other than person registered under section 25 is not liable for registration under section 22, 24.
- The officer may cancel registration from such date or retrospective in following case
a. Where registered person has contravened the provision of the act or rule made thereunder
b. Person paying tax under section 10 has not furnished return for 3 consecutive period.
c. Registered person , other than person specified in (b) has not furnished return for 6 month.
d. Any person who voluntary registered under section 25(3) has not started business within 6 month from the date of registration.
e. Registration taken by fraud suppression of fact and wilfull mistake.
The officer shall required to give opportunity of being heard to person.
- Cancellation shall affect the liability of tax and other dues of person and he shall be liable for such due before or after the cancellation of registration.
- Cancellation of registration under state or union territory shall be deemed to cancelled under this act
- On the cancellation of registration person shall be liable to pay amount equivalent to the credit taken on input tax in respect of stock, semi-finished, finished , capital goods or plant and machinery on immediately preceding the day of cancellation
In case of plant and machinery person shall pay amount equivalent to amount of credit taken as reduced by such percentage as prescribed OR tax on transection value under section 15, whichever is higher.
- Amount of tax in point 5 shall be calculated in prescribed manner.
Rules regarding cancellation/ procedure for cancellation
- When there is reason to believe that registration granted under this act shall be cancelled then officer shall issue show cause notice to person in FORM GST REG-16 to reply why registration should not be cancelled within 7 working days from the date of service of such notice.
- Reply of such notice shall be made in FORM GST REG-17 within prescribed time.
- In case where registered person has submitted application for cancellation that he is no longer liable and officer shall be issue order in FORM GST REG-18 within 30 days from the date of submission of application. This shall also apply to legal heir of deceased proprietor if application had been submitted by proprietor.
- If reply furnished in point 2 is found satisfactory officer shall drop the proceeding and pass an order in FORM GST REG-19.