Answer

1. F

   Facts

   A registered person whose business has closed can apply to cancel the GSTIN in form REG-16 on the GST portal. There is no government fee. Cancellation does not end your duty to file returns up to the cancellation date or to pay tax on stock left.

2. P

   Provisions and law

   • Sec 29(1), CGST Act 2017You or your legal heirs can ask for cancellation when the business closes, is transferred, changes constitution or is no longer liable to register
   • Rule 20, CGST Rules 2017Application in REG-16 within 30 days of the event, with details of stock, liability and payment
   • Circular 69/43/2018-GSTSOP for REG-16: effective date as requested but not before the application date; complete applications processed within 30 days
3. A

   Analysis

   Your case falls under Sec 29(1) because the business has been discontinued. You file REG-16 with the reason, the date you want cancellation from, and the value of stock and capital goods still held. Circular 69/43/2018-GST says the officer takes the date you ask for, but it cannot be earlier than the date of application. Once the officer issues the cancellation order in REG-19, you still have to file the final return GSTR-10, even if it is nil.

4. C

   Conclusion

   1. 1File every pending GSTR-1 and GSTR-3B up to the date you stopped business.
   2. 2Work out the value of closing stock and capital goods and the tax on them.
   3. 3Login, go to Services, Registration, Application for Cancellation of Registration, and file REG-16 with DSC or EVC.
   4. 4Track the ARN and reply to any query within 7 working days.
   5. 5After REG-19, file GSTR-10 within 3 months.

Simply stopping returns without filing REG-16 leads to late fees, notices and a suo motu cancellation on your record.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.