10.0 Cancellation/Surrender of registration
10.1 In the following cases, the registration can be either surrendered by the registrant or cancelled by the tax authorities:
(1) Closure of business of tax payer;
(2) Gross Annual Turnover including exports and exempted supplies (to be calculated on all-India basis) falling below threshold for registration;
(3) Transfer of business for any reason including due to death of the proprietor of a proprietorship firm;
(4) Amalgamation of taxable person with other legal entities or de-merger;
(5) Non commencement of business by the tax payer within the stipulated time period prescribed under the GST laws (Suitable provision to be made in the GST law).
10.2 In case of surrender, the system will send an acknowledgment by SMS and e-Mail to the applicant regarding his surrender of registration and he will be deemed to be unregistered from the date of such acknowledgement. There will be a provision in the system to prompt such surrendered registrants to update their address and mobile number at a prescribed periodicity till all dues are cleared/refunds made. Application form for Surrender / Cancellation of registration is annexed as Annexure-IV.
10.3 GST Law drafting committee would make appropriate provision for recovery of arrears, other dues and compliance verification pertaining to past periods.
10.4 The cancellation of registration may be done by tax authorities in the following situations:
(1) In case signed copy of the summary extract of submitted application form is not received even after a reminder;
(2) In case a tax payer contravenes specified provision of the GST law;
(3) In case a taxpayer has not filed any return at all during a predetermined period (say six months). In case a taxpayer has filed a nil return continuously for this period, then the provisions of cancellation will not be applicable.(GST Law drafting committee should provide for the time period for which if there is a continuous failure by a taxpayer to file returns, the registration shall be cancelled)
(4) The cancellation of registration may be preceded by system generated notice giving 7 days‟ time for furnishing reply by the taxpayer. Principle of natural justice to be followed before cancellation, i.e., giving an opportunity to taxpayer to be heard and passing of order.
10.5 If the taxpayer approaches the tax authority for revocation of surrendered or cancelled registration, the surrendered / cancelled registration can be revoked. The action for revocation would be initiated by that Authority which has cancelled the registration or had earlier accepted the surrender of registration.
10.6 The GST Law would contain appropriate provisions relating to revocation / surrender / cancellation of registration.
10.7 The action for revocation / cancellation of registration would have to be initiated by both Centre and State tax authorities. Once the registration is cancelled by one authority it would be deemed to be cancelled by other authority also.
10.8 The cancellation or surrender of registration would always have prospective effect.
