Decoding GST Procedures: Registration and Cancellation of Registration Procedures

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Implemented in 2017, Goods and Services Tax ( GST ) was meant to be the one-stop solution for taxation of goods produced and services provided.

At present, the whole process of registration, cancellation and revival of registration of Goods and Services Tax is still shadowed by many confusions, especially when the Goods and Services Tax (GST) registration gets canceled for the non-filing of GST Returns.

GST Registration

The procedure for GST Registration is defined as per Section 25 of the Goods and Services Tax Act.

The registration in Goods and Services Tax is State-specific and Permanent Account Number (PAN) based.

In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN” and a certificate of registration incorporating this GSTIN is made available to the  applicant on the GSTN common portal. It is also to be noted that, Registration under GST is not tax specific which means that there is single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.

GST REG-01 is to be filled and submitted by using the PAN, mobile number and email ID. Post the PAN verification on the GST portal, the mobile number and the e-mail ID will be verified using a one-time password [OTP], sent on the registered mobile number.

Once verified, an Application Reference Number (ARN) will be generated and sent on the registered email ID and mobile number.

Then, you will need to put in the application reference number + mandatory supporting documents [PAN, photographs, constitution of the taxpayer, proof of principal/additional place of business, soft copy of the passbook/statement and authorization form].

If any additional document/information is required, a form GST REG-03 will be auto-generated outlining the requirements. A response to this form can be submitted by using the form GST REG-04 within 7 working days of receiving the form GST REG-03.

If form GST REG-01 / GST REG-04 is complete and authentic, a certificate of registration will be issued via form GST REG-06 within 3 working days of the receipt of the GST REG-01 / GST REG-04. If the information provided is not satisfactory, the registration application will be rejected by issuing form GST REG-05. 

The Form GST REG-06, in which the certificate of registration is granted will bear the Goods and Services Tax Identification Number . It will also contain other details such as place of business.

As per Section 27 of the Goods and Services Tax Act, every casual taxable person and non-resident taxable person is mandated to get registered at least five days prior to the commencement of business irrespective of the turnover threshold limit. The registration for the specified persons are done by submission of Form GST REG-09.

The proper officer, upon finding that a person is liable to get registered under the Goods and Services Tax Act and has failed to apply for a registration can issue a suo motu registration by issue of an order in Form GST REG-12.

Cancellation of Registration by Department

The GST Department can cancel the GST Registration in case :–

If the taxpayer does not conduct any business from the declared place of business,

issues invoice or bill without supply of goods/services (in violation of the provisions) and/or

violates the anti-profiteering provisions (withholding ITC benefits from customers).

Also, failure to file the GSTR-1 and GSTR-3B for two consecutive months will also get the GST registration canceled.

Cancellation Registration by Application

Application for Cancellation of GST Registration is to be made in Form GST REG-16 upon–

            Discontinuation of business.

Amalgamation or full transfer or demerger of business where the assessee entity ceases to exist.

Change in constitution of business.

The legal heirs of taxpayers can also follow the same procedure and file Form GST REG-16 for cancellation of registration.

A registered person can submit an application for revocation of cancellation, in form GST REG-21, if his registration has been canceled suo moto by the proper officer.

The applicant must submit it within 30 days from the date of service of the cancellation order at the Common Portal.

If the proper officer is satisfied he can revoke the cancellation of registration by an order in Form GST REG-22 within 30 days from the date of receipt of the application. Reasons for revocation of cancellation of registration must be recorded in writing.

The proper officer can reject the application for revocation by an order in form GST REG-05 and communicate the same to the applicant.

Before rejecting, the proper officer must issue a show-cause notice in form GST REG–23 for the applicant to show why the application should not be rejected.

The applicant must reply in Form GST REG-24 within 7 working days from the date of the service of notice.

The proper officer will take a decision within 30 days from the date of receipt of clarification from the applicant in form GST REG-24.

Application for revocation cannot be filed if the registration has been canceled because of the failure to file returns. Such returns must be furnished first along with payment of all dues amounts of tax, interest & penalty.

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