Can a registered person cancel his GSTIN if his turnover is less than the threshold limit for GST registration subsequently? If yes what is the reason for cancellation to be given in the portal while applying for cancellation?
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GST REGISTRATION CANCELLATION IF TURNOVER IS LESS THAN THRESHOLD LIMIT
Replies (4)
Https://tutorial.gst.gov.in/userguide/registration/Cancellation_of_Registration_manual.htm
Thank you Sir. " Ceased to be liable to pay tax" can be given as the reason for cancellation; right?.
One more thing. If the registration is cancelled after discharging the GST liability on Inputs (Stock) shall he continue the business as unregistered under the same trade name?
Right?
-->> Better to select others & give reason as "UNDER THRESHOLD LIMIT"
as unregistered under the same trade name?
--->>> He can doing/continue business as per same name and goods.
-->> Better to select others & give reason as "UNDER THRESHOLD LIMIT"
as unregistered under the same trade name?
--->>> He can doing/continue business as per same name and goods.
Yes, you can apply for voluntary cancellation when turnover has genuinely and permanently dropped below the threshold.
Steps:
1. Ensure all GSTR-1 and GSTR-3B returns are filed with no pending obligations. Cancellation application will be rejected if any return is pending.
2. Apply on the GST portal: Services > Registration > Application for Cancellation of Registration. Mention the effective date of cancellation.
3. The officer may ask for clarifications or call for a hearing. Keep sales invoices and bank statements showing the turnover drop ready.
4. After the department approves, file GSTR-10 (final return) within 3 months of the cancellation order.
Most-missed step: On the date of cancellation, compute the ITC reversal on inputs held in closing stock under Rule 44 of CGST Rules. You must reverse this credit and pay the tax. This amount is reported in GSTR-10.
If the ITC reversal calculation feels complex, getting a GST consultant can prevent a deficiency notice. This [guide on what to look for in a GST consultant](https://taxgarden.in/blog/gst-consultant-hyderabad-how-to-choose-cost-2026) helps you find the right one without overpaying.
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