What are the documents required for GST cancellation?

The process of withdrawing from the GST registration voluntarily is known as GST cancellation. The process does not require formal notices from the GST department. This article discusses the documents required for GST cancellation and the benefits of doing so.

Cancellation of GST registration

The GST has successfully expanded the taxpayer base in India and created a single unified market for goods and services. Despite its success, the GST has been subject to several issues and criticisms. One of the most common issues is the difficulty many taxpayers face in filing their GST returns. This has led to some taxpayers wanting to cancel their registration voluntarily. Under the GST regime, the registration of any person or entity is mandatory if their aggregate turnover during a financial year exceeds the prescribed threshold limit. However, suppose a business does not want to continue under the GST regime. In that case, it may opt for voluntary cancellation of GST registration. The process of GST cancellation requires the taxpayer to apply for cancellation on the GST portal. Once the GST department approves the application, the taxpayer's registration is cancelled. After cancellation, the taxpayer can no longer file GST returns or pay any GST. Note: The GST Department must receive a cancellation request in Form GST REG-16 from any person or business wishing to cancel their registration. The GST Officer will issue an order to terminate GST registration in Form GST REG-19 after evaluating the application if they are satisfied.

Documents required

PAN card
PAN card of the authorized signatory.
Aadhar card
Aadhar card of the authorized signatory.
Last Return Details
Specifics of the last return filed by the taxpayer.
Tax Particulars
Tax due on input stock and capital and input available for semi-finished and finished items.
Company Authority Details
Details of when an existing unit is transferred, merged, demerged, etc.

Benefits of GST Cancellation

Cancellation of GST registration is a beneficial process for taxpayers as it relieves them from the liability of filing GST returns.

By opting out of the GST system, taxpayers avoid paying any GST on the goods and services they buy. It can save the cost of goods and services purchased.
It allows taxpayers to take advantage of the tax-free nature of specific goods and services. For example, certain healthcare services, educational services, and food items are exempt from GST. By opting out of the GST system, taxpayers can purchase these goods and services without paying any GST.
It helps reduce paperwork and simplify the tax filing process. Since taxpayers are no longer required to keep track of GST payments, they can save time and effort when filing their taxes.
It can lead to better compliance with tax laws since taxpayers are no longer required to pay GST on certain goods and services.
Taxpayers can free up additional funds for other purposes by avoiding GST payments. This can lead to improved financial security for taxpayers and improved cash flow for businesses.