A business will keep on going without any kind of legal changes its not compulsory. GST registration involves many details which may be changed after sometime. There are various cases in which change comes in the details furnished by the registered person. Some of them are:-
- Change in the name of business
- Change in proprietor
- Conversion of proprietorship into partnership/LLP and vice versa
- Change in partners
- Phone number or Email id changes
- Change in PAN
- Death of Proprietor
What are core fields?
Ans: Following fields of the GST registration application are called core fields.
- Name of the Business, (Legal Name) if there is no change in PAN
- Addition / Deletion of Partner
- Principal Place of Business (other than change in State) or Additional Place of Business (other than change in State)
Where there is any change or amendment in the above particulars furnished in registration details of registered person, he must submit an application within 15 days of such changes along with documents relating to such changes at the common portal.
In case the amendment required by the registered person relates to the core fields of information, then the proper officer may on the basis of information furnished or as the ascertained by him approve or reject amendment.
What are non-core fields?
Ans: Fields of the registration other than core fields are called non-core fields. For example, details of phone number or email id, etc.
We can edit or change the non-core fields. They are auto populated in registration of the taxpayer. For any amendments to these fields by the taxpayers, no approval is required from the Tax Officer.
What in case of change in PAN?
Ans: In case of changes in constitution of business and which leads to changes in PAN of a registered person then the person shall apply for fresh registration. As the GSTIN is PAN based, any change in PAN would lead to new registration.
What CGST Act Says?
Ans: As per section 28 of CGST Act, every registered person and a person to whom unique identity number has been assigned shall inform the proper officer of any changes in the information furnished at the time of registration or subsequent thereto in such form and manner as given in Rule 19 of CGST Rules 2017.
The proper officer may on the basis of information furnished approve or reject within such period as prescribed in rule 19. However amendment in certain things or certain matters approval of proper officer is not required. Proper officer cannot reject the application of amendment in registration until reasonable opportunity of being heard is given to the registered person.
What is the procedure of Amendment given In CGST Rules 2017?
Ans: Where there is a change relating to
- legal name of business,
- address of principal place of business or
- any additional places or
- addition or deletion or retirement of partner, director or karta etc who is responsible for the day to day affairs of the business.
Then the person is required to
- submit an application electronically within 15 Days of such change
- duly signed and verified through electronic verification code (EVC),
- in FORM GST REG-14 along with the required documents relating to such changes.
Such change does not warrant cancellation of registration then the proper officer after due verification approve the amendment or changes within a period of 15 working days from the date of receipt of application and issue an order in FORM GST REG-15 electronically.
When the business is in more than one state?
Ans: In case of changes relating to change in legal name of the business or change in person who is responsible for the day to day business then the changes will have effect of each of such state from where there has been a valid registration granted.
Which fields cannot be amended using the application for Amendment of Registration?
Ans: Application for Amendment of Registration cannot be filed when there is:
- Change in PAN.
- Changes in Constitution of Business resulting in change of PAN.
- Change in Place of Business from one State to other.
Application for Amendment of Registration cannot be filed for change in PAN because GST registration is PAN-based. One need to make fresh application for registration in case there is change in PAN.
How to apply for amendment?
Step 1: Submit FORM GST REG-14 along with required documents.
Step 2: The GST officer will verify and approve within 15 days in FORM GST REG-15. The change will take effect from the date of occurrence of the event.
If the Officer is not satisfied with the documents then he can serve a show cause notice in FORM GST REG-03.
- The applicant must reply in FORM GST REG-04 within 7 days.
- If the Officer is not satisfied with the reply, he can reject the application and pass an order in FORM GST REG -05.
- If the GST Officer does not to take any more action then it is assumed that the information has been changed.
Can we change or update the PAN (Permanent Account Number) ?
Ans: No. If there is any mistake in the PAN number, the applicant will have to cancel GSTIN of old and apply for fresh registration using FORM GST REG-01.
This is because GST Number is based on the PAN.
How to apply for Cancellation?
Step 1: Login to the GST Portal.
Step 2: Go to the Services > Registration > Application for Cancellation of Registration option.
Step 3: Select the Reason tab -:
If it’s a company select: Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise
If it’s proprietary or Firm select: Change in constitution of business leading to change in PAN:
Step 4: Enter the Details:
- Date from which registration is to be cancelled.
- Provide the GSTIN of the transferee entity under the Details for Transfer, Merger or Change in Constitution section.
- System will validate the same, and based upon it’s Legal Name of Business, will auto-populate the Trade Name.
- Click Save & Submit the Application.
Note : File the Form GST ITC-02, electronically on the Common Portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee:
On the death of proprietor, Can his son can continue the business with same GSTIN?
Ans: Proprietorship business has no perpetual existence, sole proprietorship ceases to exist if the proprietor dies. Therefore, son cannot continue the business of deceased sole proprietor.
- Legal heir/successor should apply for cancellation of registration certificate, available on gst portal. ( or go to local GST office for GSTIN cancellation)
- Settle all the GST liabilities, if any
The son will take new registration under GST with a new PAN to continue the business.
Is there any time limit to apply for cancellation after the date of death? If applied for cancellation then what about the existing stock?
Ans: Yes you need to make an application within 30 days when the cancellation occurrences i.e. death of proprietor. You need to pay tax on existing stock. File form GST REG.16 and show liability their and pay tax.
What is the process to cancel the GSTIN in case of death of sole proprietor? How can a legal heir transfer the ITC to a new entity in case of death of sole proprietor?
Ans: In case of death of sole proprietor, Legal heir has to visit office of the Proper Officer (Jurisdiction Officer) –
- Submit the Death Certificate of the sole proprietor along with the Succession Certificate to the Proper Officer as documentary evidence.
- Proper Officer will add legal heir as the authorized signatory on the GST Portal.
Note: In case the successor is minor, he cannot added as an authorized signatory. In such cases, minor successor needs to represent by his legal/ natural / testamentary (appointed by will) guardian. The legal guardian needs to appoint or nominated by the competent authority (Normally District Judge). Legal guardian can take decisions on behalf of minor legal heir/ successor and he can also appoint authorized signatory for this purpose.
- Legal heir has to apply for new registration.
- Once the new registration is approved, Legal heir will required to apply for the transfer of ITC by filing FORM GST ITC–02 to new entity. However, there is no restriction on filing of ITC-02 pre or post cancellation. It is an independent form and has no relation with cancellation of the sole proprietorship firm.
- Username and Temporary password reset will be sent to the e-mail address of the newly added authorized signatory as entered by the Tax Officer in the jurisdiction. Legal heir will Login the Portal.
- Legal heir or his/ her authorized signatory has to submit the application for cancellation and select the “Death of Proprietor” as reason of Cancellation of Registration and attach sufficient proof.
How to Transfer matched Unutilized ITC by the Transferor?
Ans: Following are the steps to transfer the matched the unutilized ITC by filing Form GST ITC – 02.
Step 1: Log into the official
Step 2: Go to Services > Return > ‘ITC Forms’. The GST ITC forms page will display on the screen.
Step 3-Transfer of Matched Unutilised Input Tax Credit
Step 4: Click on the Prepare Online button.- The transferor will choose to transfer all or partial ITC and will fill the amount of matched ITC that has to be transferred.
Step 5: Enter the GSTIN of transferee (New GSTIN) and Details of ITC to be transferred – The amount of ITC is transferred for each major head under the section. The amount entered has to be less than or equal to the amount of ITC that is available in the Electronic Credit Ledger.
Step 6: Enter the details
Under section ‘Particulars of Certifying Chartered Accountant or Cost Accountant’, fill the details
- Name of the certifying accounting firm
- Name of the certifying Chartered Accountant / Cost Accountant of the certifying firm
- Membership number of the certifying firm
- Date of the certificate issued by the certifying accounting firm
Step 7: Attach the Certificate
The transferor has to attach the copy of the certificate either in JPEG/ PDF format and the attachment should not exceed 500 KB.
Step 8: Click on Save
Click on ‘Save’ to upload the data and attachment to the GST Portal. Check the statement box given below, to declare that the furnished information is true and correct
Step 9: Select the Authorized Signatory
From the drop-down list, Select he authorized signatory.
Step 10: File Form GST ITC – 02 using DSC or the EVC option.
Step 11: Click on Proceed option
Step 12: Enter the OTP
How to accept the Transfer of Matched Unutilized ITC by the Transferee?
Ans: Once the transferor has filed Form GST ITC – 02 to transfer the matched unutilized ITC, the transferee needs to login to the GST Portal and has to either accept or reject the ITC transfer. Here are the steps to process the ITC transfer.
– 1: Login to the Portal
– 2: Go to Services > User Services > ITC 02 – Pending for actions
– 3: Click the ARN link
– 4: Details of transferred ITC will appear. The User will either Accept or Reject the request.
– 5: On Clicking the Accept option, it will prompts the user to proceed with filing the response.
– 6: Check the Declaration Statement
– 7: Select the Authorized Signatory
– 8: File the Form using DSC or EVC
– 9: Click on Proceed option
– 10: Enter the OTP
– 11: Click the option Back- you will see the changed status Accepted.
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