GST Surrender

GST surrender, also known as GST registration cancellation, is the process of discontinuing your Goods and Services Tax (GST) registration. This occurs when a person or business ceases to engage in activities that require them to be registered under the GST regime.

Reasons for GST Surrender

There are various reasons why a person or business may opt for GST surrender:

  1. Shutting down business or profession: If a business or profession is being permanently closed, surrender of GST registration is necessary.
  2. Not meeting registration criteria: If a business or profession no longer fulfills the criteria for mandatory GST registration, surrender becomes mandatory.
  3. Amalgamation or demerger: If a business undergoes a merger or demerger, the transferee entity assumes the liabilities and continues with the GST registration, while the transferor entity surrenders their GST registration.
     

Documentation for GST Surrender?

Along with the GST REG-16 form, the following documents may be required for GST surrender:

  1. Proof of cessation of business or profession: This could be a closure certificate from the concerned authorities or a declaration from the owner.
  2. Stock statement: If the applicant has any taxable stock, a stock statement detailing the quantity, value, and tax liability is required.

Consequences of GST Surrender

Upon surrender of GST registration, the following consequences apply:

  1. Revocation of ITC: Any unutilized input tax credit (ITC) is deemed to have been reversed, and the corresponding tax amount is payable.
  2. Liability for past transactions: The applicant remains liable for any past tax liabilities or discrepancies discovered during the verification process.
  3. Prevention from reopening registration: Once surrendered, the GSTIN cannot be reopened unless specific conditions are met.

Conclusion

GST surrender is a crucial step for businesses or individuals who no longer meet the eligibility criteria for GST registration or are permanently discontinuing their operations. It is essential to follow the prescribed process and ensure compliance with tax obligations to avoid any legal repercussions.

Document Required

  1. GST Login Credentials