The Goods and Services Tax Network (GSTN) has introduced an online facility enabling taxpayers registered under Rule 14A of the CGST Rules to apply for withdrawal from the simplified registration scheme through the GST Portal.
1. Filing of Form GST REG-32
Taxpayers seeking withdrawal from the simplified registration scheme must submit an application in Form GST REG-32 on the GST Portal.
Key procedural requirements include:
- Draft applications must be submitted within 15 days of initiation.
- Aadhaar authentication or biometric authentication is mandatory for:
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- The Primary Authorised Signatory, and
- At least one Promoter/Partner (where applicable).
These requirements are intended to ensure authenticity and regulatory verification during the withdrawal process.
2. Restrictions During Application Processing
During the processing of Form GST REG-32, certain restrictions will apply. Taxpayers will not be permitted to:
- File applications for core amendments
- File applications for non-core amendments
- Submit self-cancellation applications
These restrictions will remain in place until the withdrawal application is processed and approved.
3. Post-Approval Compliance Requirements
Upon approval of the withdrawal application through Form GST REG-33, taxpayers must comply with revised reporting requirements.
Specifically, taxpayers will be required to report output tax liability exceeding ₹2.5 lakh on supplies made to registered persons from the first day of the succeeding month following approval.
4. Purpose of the Facility
The introduction of this online facility streamlines the process for taxpayers opting to exit the simplified registration scheme while ensuring appropriate authentication, regulatory checks, and compliance monitoring within the GST framework.
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