The basic definition of GST
The goods and services tax or popularly called GST is the tax which eliminates all the indirectly levied taxes earlier. It is applicable to all the Indian goods, products and services. This tax is something which makes India fall under one unified market tax. Taxpayers no longer have to pay multiple taxes such as VAT, service tax, customs duty, etc. Since this tax came into effect from 1st July 2017, the GST day is celebrated on the 1st of July every year.
GST Cancellation or Surrender
There could many reasons for which a GST might be cancelled. One of the reasons for the GST cancellation might be from the department on their own. Another reason for this might be that the organisation would want to remove it by themselves.
Reason for cancellation:
There can be many reasons for the GST Cancellation. Some of them have been listed down below.
Even if the person may be registered under the existing laws, it is quite possible that he is not liable for being registered under the GST Act.
If there is a discontinuation of the business because of the demise of the proprietor.
There can be reasons due to the change in the constitution of the business.
If the taxable person isn’t liable to be registered.
If since the past 3 consecutive years a registered person has not been paying tax under the composition levy.
If there is any person who has not provided the returns for a tenure of the continuous six months, other than the person paying the tax under the composition levy.
If the business was not commenced within the timeframe of six months from the date or registration by anyone who has done a voluntary registration under the subsection (3) of section 25.
If there have been any fraudulent activities at the time of registration pROCesses, they can be removed.
Consequences of GST Cancellation
The taxpayer would no longer be allowed to pay the GST.
There would be many businesses which need to have the GST registration. But if the Company still continues to file the GST after the cancellations, then it is liable to heavy punishments.