What Should be the GST Cancellation Charges?

GST (Goods and Services Tax) is a must for every business that crosses the threshold limit set by the government. But sometimes, due to various reasons, a business owner may want to cancel their GST registration. In such cases, many people wonder—what are the GST cancellation charges? Let’s understand everything in detail.

What is GST Cancellation?

GST cancellation means closing your GST registration permanently. Once your GST number is cancelled, you cannot charge GST from customers, and you are also not required to file GST returns. There are many reasons why a person or business might want to cancel their GST registration:

• Business is closed
• Change in business structure (like proprietorship to partnership)
• Turnover has gone below the exemption limit
• You have taken voluntary registration but no longer need it

Who Can Cancel GST Registration?

There are mainly 3 types of GST cancellations:

1. Voluntary Cancellation: Done by the business owner themselves.
2. Cancellation by Tax Officer: If returns are not filed for a long time or if GST rules are not followed.
3. Cancellation by Legal Heirs: In case of the death of a sole proprietor.

GST Cancellation Process

The process of cancelling GST registration is completely online and quite simple:

1. Login to the GST portal
2. Go to “Services” > “Registration” > “Application for Cancellation”
3. Fill Form GST REG-16 with proper reason and details
4. Submit and verify with DSC or EVC
5. After verification, a cancellation order (Form GST REG-19) will be issued by the GST officer

So, What Are the GST Cancellation Charges?

Now comes the main question – What are the charges for GST cancellation?

Government Charges: There are no government fees for cancelling your GST registration. The GST portal allows you to cancel your registration for free if you do it yourself.

Professional Charges: If you take help from a GST expert, CA, or accountant, they may charge a professional fee. These charges vary depending on the city, professional, and complexity of your case.

Here is a general idea of the GST cancellation charges in India:

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Documents Required for GST Cancellation

To cancel your GST number, you need to keep the following documents ready:

• GSTIN number
• PAN card of business owner
• Aadhaar card
• Reason for cancellation
• Closing stock details (if any)
• Digital signature (DSC) or Aadhaar OTP

Things to Keep in Mind

• You must file all pending GST returns before applying for cancellation.
• If you have stock lying with you at the time of cancellation, you may need to pay tax on closing stock.
• After cancellation, you will get a cancellation certificate which acts as proof that your GST is officially closed.

Final Words

Cancelling your GST registration is not a complicated task, but it must be done carefully. If you’re not sure how to go about it or want to avoid any errors, it’s always best to get help from an experienced GST consultant.

GST Cancellation Frequently Asked Questions

Q1. What are GST cancellation charges in India?

Answer: GST cancellation charges refer to the cost a taxpayer may incur while cancelling their GST registration. If you do it yourself on the GST portal, it is usually free. However, if you take help from a GST consultant or professional, they may charge a service fee ranging between ₹300 to ₹1,000 depending on the complexity of the case.

Q2. Is there any government fee for GST cancellation?

Answer: No, the Government of India does not charge any official fee for GST registration cancellation. The entire process is available online through the GST portal and can be done at no cost by the taxpayer themselves.

Q3. Why do professionals charge for GST cancellation?

Answer: Professionals charge a fee because they assist with document preparation, understanding eligibility, checking for pending liabilities, and ensuring smooth and error-free cancellation. Their charges cover their time, experience, and the support they provide throughout the process.

Q4. Can GST be cancelled if there are pending returns or dues?

Answer: No, you cannot cancel your GST registration if there are pending GST returns or unpaid dues. All returns must be filed, and any liability must be cleared before applying for cancellation.

Q5. How long does it take to cancel GST registration?

Answer: If all documents and returns are in order, GST registration cancellation generally takes 7–15 working days after applying online. In some cases, it may take longer if there are pending verifications or issues.