Introduction
When a taxpayer registers for Goods and Services Tax (GST), they are given a GSTIN number. GST registration suspension occurs when the central tax authority or the taxpayer wishes to cancel this number. In India, cancellations are handled by the tax officer. Businesses are not permitted to operate following the deletion of their GST number. If they continue to do so, the income-tax authorities will apply severe fines. Once the GSTIN is canceled, the company is no longer required to pay or levy GST. This often denotes a business winding down or a change in the business constitution.
Reasons behind Cancellation/Suspension of GST Registration
For any of the following reasons, the Central Tax Authority or a business owner may choose to cancel GST registration:
The individual is registered under one of the preceding tax laws: Some firms that were registered under the previous tax regime are not required to register for GST. For example, the VAT threshold limit was Rs. 10 lakhs, but the GST threshold limit is Rs. 40 lakhs. As a result, VAT-registered individuals are exempt from GST registration.
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