TMI BlogProcessing of Applications for Cancellation of Registration submitted in FORM GST REG-16X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Customs, vide F. No. CBEC/20/16/04/2018-GST on the subject above. The Board, in exercise of its powers conferred by Section 168(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ), hereby clarifies the issues as detailed hereunder: 2. Section 29 of the CGST Act, read with rule 20 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Rules ) provides that a taxpayer can apply for cancellation of registration in FORM GST REG-16 in the following circumstances: a. Discontinuance of business or closure of business; b. Transfer of business on account of amalgamation, merger, de-merger, sale, lease or otherwise; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... semi-finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery; e) In case of transfer, merger of business, etc., paniculars of registration of the entity in which the existing unit has been merged, amalgamated, or transferred (including the copy of the order of the High Court / transfer deed); f) Details of the last return filed by the taxpayer along with the ARN of such return filed. On successful submission of the cancellation application, the same appears on the dashboard of the jurisdictional officer. 5. Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of commission/omission committed before or after the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant an opportunity to be heard, recording reasons for rejection in the dialog box that opens once the Reject button is chosen. If reply to the query is received and the same on examination is found satisfactory, the Proper Officer may approve the application for cancellation and proceed to cancel, the registration by issuing an order in FORM GST REG-19. If reply to the query is found to be not satisfactory, the Proper Officer may reject the application for cancellation on the system, after giving the applicant an opportunity to be heard. The Proper Officer must also record his reasons for rejection of the application in the dialog box that opens when the Reject button is chosen. 7. Section 45 of the CGST Act requires e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellation of registration. However, it is clarified that this requirement to debit the electronic credit and/or cash ledger by suitable amounts should not be a prerequisite for applying for cancellation of registration. This can also be done at the time of submission of final return in FORM GSTR-10. In any case, once the taxpayer submits the application for cancellation of his/her registration from a specified date, he/she will not be able to .utilize any remaining balances in his/her electronic credit/cash ledgers from the said date except for discharging liabilities under GST Act upto the date of filing of final return in FORM GSTR-10. Therefore, the requirement to reverse the balance in the electronic credit ledger is automatically met. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returns under section 39 (FORM GSTR4, FORM GSTR-3B and FORM GSTR-4), section 44 (Annual Return - FORM GSTR-9 / FORM GSTR-9A / FORM GSTR-9C). section 45 (Final Return - FORM GSTR-10) or section 52 (TCS Return - FORM GSTR-6). It is clarified that issuance of notice would not be required for registered persons who have not made any taxable supplies during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration) and has furnished an undertaking to this effect. 11. It is pertinent to mention here that section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for Suspension of registration. The intent of the said amendment is to ensure tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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