Procedures for processing of applications of taxpayers in Form GST REG-16 for cancellation of registration under Section 29 of CGST Act 2017 read with Rule 20 of CGST Rules 2017

Circular No. ES/ 265/2018-19                                                                                October 29, 2018 

To: Members of the Council

Sub: Procedures for processing of applications of taxpayers in Form GST REG-16 for cancellation of registration under Section 29 of CGST Act 2017 read with Rule 20 of CGST Rules 2017

Dear Member,

We would like to inform you that CBIC has issued Circular No. 69/43/2018-GST dated 26th October, 2018 clarifying issues related to procedures for processing of applications of taxpayers in Form GST REG-16 for cancellation of registration under Section 29 of CGST Act 2017 read with Rule 20 of CGST Rules 2017.

Form GST REG- 16 is applicable only when the taxpayer himself applies for the cancellation of registration and there is no consideration for the application other than the taxpayers' application which has elapsed one or more year after the GST registration.

Section 29 of the CGST Act, read with rule 20 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Rules”) provides that a taxpayer can apply for cancellation of registration in FORM GST REG-16 in the following circumstances:

  1. Discontinuance of business or closure of business;

  2. Transfer of business on account of amalgamation, merger, de-merger, sale, lease or otherwise;

  3. Change in constitution of business leading to change in PAN;

  4. Taxable person (including those who have taken voluntary registration) is no longer liable to be registered under GST;

  5. Death of sole proprietor;

  6. Any other reason (to be specified in the application).

In view of the above, CBIC has now prescribed procedures for processing of applications of taxpayers in Form GST REG-16 for cancellation of registration under Section 29 of CGST Act 2017 read with Rule 20 of CGST Rules 2017.

For more information regarding procedures, members may kindly refer to Circular No. 69/43/2018-GST dated 26th October, 2018.

Members may kindly make a note of the same.

Thanking you,

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR

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