APPLICATION FOR CANCELLATION OF REGISTRATION - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

7. APPLICATION FOR CANCELLATION OF REGISTRATION 7.1 The applicant shall apply for cancellation of registration electronically in FORM GST REG-16 and shall furnish the details of inputs, inputs contained in semi-finished or finished goods and of capital goods held in stock on the date from which cancellation of registration is sought and liability thereon. 7.2 The applicant shall also furnish details of the payment against such liability. Application should be submitted within thirty days of occurrence of the event warranting cancellation, either directly or through a Facilitation Centre as per Rule 20 of CGST Rules, 2017. 7.3 In case of death of sole proprietor, application for cancellation of registration shall be made by legal heir/successor in FORM GST REG-16 . 7.4 CBIC Circular No. 96/15/2019-GST dated 28.3.2019 states that the transfer or change of ownership of business will include transfer or change in ownership of business due to death of sole proprietor. 7.5 If the legal heirs continue the business, it will be considered as transfer of business. Credit shall be allowed to be transferred as per Section 18(3) of CGST Act, 2017 read with Rule 41 of CGST Rules, 2017. The registered person shall file FORM GST ITC-02 in respect of registration which is required to be cancelled. FORM GST ITC-02 should be filed before filing application for cancellation of registration. On acceptance by transferee/ successor, unutilized ITC as specified in FORM GST ITC-02 shall be credited to electronic credit ledger of transferee. The transferee is liable to pay tax, interest and penalties of the deceased person, as per Sections 85(1) and 93(1) of CGST Act, 2017.