About This Service
GST Cancellation is the formal procedure to deactivate a GSTIN when a business ceases to operate or no longer meets the criteria for mandatory registration. Cancellation can be voluntary (initiated by the taxpayer) or suo-moto (initiated by the tax officer due to non-compliance). Once the cancellation is initiated, the taxpayer must file a “Final Return” (GSTR-10) within three months to account for any tax liability on the stock currently held by the business.
Eligibility & Criteria
- Requirement: Mandatory if the business is closed or the proprietor passes away.
Penalties & Due Dates
| Service / Offence | Form / Section | Late Fee (Per Day) | Maximum Limit / Penalty |
|---|---|---|---|
| Monthly/Quarterly Returns | GSTR-1 / 3B | ₹50 (₹25 CGST + ₹25 SGST) | ₹10,000 per return (Cap varies by turnover*) |
| Nil Returns (Monthly/Qtr) | GSTR-1 / 3B | ₹20 (₹10 CGST + ₹10 SGST) | ₹1,000 per return |
| Annual Return (AATO < ₹5Cr) | GSTR-9 | ₹50 per day | 0.04% of State Turnover |
| Annual Return (AATO > ₹5Cr) | GSTR-9 | ₹200 (₹100 + ₹100) | 0.50% of State Turnover |
| Reconciliation Statement | GSTR-9C | (Included in GSTR-9) | Up to ₹25,000 (General Penalty) |
| Delayed Tax Payment | Section 50 | N/A | 18% per annum on net tax liability |
| Non-Registration | Section 122 | N/A | ₹10,000 or 100% of tax due (whichever is higher) |
| Wrong ITC (Claimed & Used) | Section 122 | N/A | 100% of ITC or ₹10,000 (whichever is higher) + 18% Interest |
| Fake Invoicing / Fraud | Section 122 | N/A | 100% of tax evaded + Possible Imprisonment |
| Not Issuing Invoice | Section 122 | N/A | ₹10,000 or tax amount (whichever is higher) |
| General Offence | Section 125 | N/A | Up to ₹25,000 |
Strategic CFO Services
| Service | Primary Deliverable | Value-Add Deliverable (The "Expert Touch") | Legal/Audit Documentation |
|---|---|---|---|
| GST Registration | GST REG-06 (Registration Certificate) | Welcome Kit: HSN/SAC Mapping & Compliance Calendar for the first year | Copy of the REG-01 application and the ARN receipt for the file. |
| Monthly/Qtr Returns | GSTR-1 & 3B Filed PDFs + Acknowledgement | Tax Computation Sheet: Breakdown of Output Tax, ITC used, and Cash paid. | Monthly Dashboard: Sales trends vs. last month & ITC utilization ratio. |
| Annual Return (GSTR-9) | Form GSTR-9 Filed PDF | GSTR-1 vs 3B vs Books Reconciliation: Detailed sheet identifying every rupee of difference. | Management Representation Letter: Signed summary of facts used for filing. |
| GSTR-9C | Form GSTR-9C (Self-Certified) | Audited Reconciliation Report: Clear mapping of GST turnover to P&L Turnover | Table 14 Report: Detailed verification of ITC claimed on expenses. |
| GST Notice Reply | Legal Reply Draft (ASMT-11 / DRC-06) | Executive Summary: A 1-page "Risk Assessment" of the notice and potential outcomes. | Supporting Evidence Annexure: A book of all invoices/ledgers submitted to the dept. |
| GST Reconciliation | Reconciliation Report (Books vs 2B) | "Blacklisted Vendor" List: List of suppliers who haven't filed, blocking your client's ITC. | Rule 36(4) Compliance Report: Proof that ITC claimed matches GSTR-2B. |
| GST LUT Registration | LUT Acceptance Receipt (RFD-11) | Exporter's Guide: Updated rules for Zero-Rated supplies for the current year. | Copy of the Undertaking signed by two witnesses for records. |
| GST Amendment | Revised REG-06 Certificate | Verification Report: Confirming the new details reflect accurately on the portal | Copy of the REG-14 history showing "Before" and "After" status. |
| GST Refund | Refund Sanction Order (RFD-06) | Calculation Logic: Detailed math showing "Net ITC" vs "Turnover" for maximum refund. | Statement of Invoices: Comprehensive list of all export/inverted duty invoices. |
| GST Cancellation | Final Order (REG-19) | Stock Tax Computation: Calculation of tax to be paid on remaining stock (Exit Audit). | GSTR-10 (Final Return) acknowledgement and tax clearance summary. |
