GST Surrender/Cancellation step by step.

The GST surrender or deactivation process (officially known as Cancellation of GST Registration) is done online by filing the Form GST REG-16.

Here is the step-by-step process for a taxpayer who wishes to cancel their GST registration:

---

Step-by-Step GST Cancellation Process

The entire process is completed online through the GST Portal.

Phase 1: Application Filing (Form GST REG-16)

Step 1: Log In to the GST Portal

• Go to the official GST Portal: https://www.gst.gov.in/

• Log in using your User ID and Password.

Step 2: Navigate to the Application

• Go to Services > Registration > Application for Cancellation of Registration.

Step 3: Fill in Basic Details

• The form will auto-populate the Basic Details (GSTIN, Legal Name, Address of Principal Place of Business).

• Provide your Address for Future Correspondence. You can check the box to copy the principal place of business address.

• Click SAVE & CONTINUE.

Step 4: Enter Cancellation Details

• Reason for Cancellation: Select the most appropriate reason from the dropdown list. Common reasons include:

  • Discontinuance of business / Closure of business.

  • Ceased to be liable to pay tax (Turnover below the threshold).

  • Change in constitution of business leading to change in PAN.

• Date from which Registration is to be Cancelled: Enter the effective date of cancellation (this date cannot be earlier than the date of the event warranting cancellation, e.g., date of closure).

• Tax Liability on Stock (Mandatory): If you have inputs, semi-finished goods, finished goods, or capital goods in stock on the effective date of cancellation, you must provide:

  • The value of stock.

  • The corresponding Input Tax Credit (ITC) or the Tax Payable (whichever is higher) on that stock.

• The system will require you to enter the value of liability you wish to offset from your Electronic Cash Ledger or Electronic Credit Ledger.

• Click SAVE & CONTINUE.

Step 5: Verification and Submission

• Navigate to the Verification tab.

• Check the verification statement box.

• Select the Authorized Signatory from the dropdown and enter the Place of application.

• Submit the application using either:

  • DSC (Digital Signature Certificate): Mandatory for Companies and LLPs.

  • EVC (Electronic Verification Code): Available for other entities (like Proprietorships, Partnership Firms).

• Upon successful submission, an Application Reference Number (ARN) will be generated and sent to your registered email/mobile.

Phase 2: Final Compliance

Step 6: Officer Verification

• The GST officer will review your application (GST REG-16) and documents.

• They may issue a notice in FORM GST REG-17 if any clarification or additional document is required. You must respond to this notice within 7 working days in FORM GST REG-18.

• If satisfied, the officer issues an order for cancellation in FORM GST REG-19 within 30 days of the application date.

Step 7: File Final Return (GSTR-10)

• After the cancellation order is issued, you must file a Final Return in FORM GSTR-10.

• This return must be filed within three months of the date of cancellation order or the date of cancellation, whichever is later.

• Filing GSTR-10 is mandatory to officially close your GST records and avoid penalties.

It's essential to follow this process and clear all liabilities to ensure a smooth surrender of the GST registration. You can learn more about the complete process in the following video: How to Cancel GST Registration Online | Surrender GST Number Step-by-Step Guide.