GSTIN Cancellation and related Questions- What , How and when?
Q. Who can cancel GST Registration?
- The taxpayer himself
- GST officer
- A legal heir of the taxpayer
Q. Who All Cannot File the Cancellation of GST Registration?
- Taxpayers registered as Tax deductors / Tax collectors.
- Taxpayers who have been allotted UIN (Unique Identification Number)
Q. What next after GST Registration is cancelled?
Ans. In case you have applied for cancellation of GST registration then no need to file any return from then.
Last step left only to file electronically :
- GSTR- 10, the Final return within three months of the date of cancellation or date of order of cancellation, whichever is later, and
- GSTR-9, the Annual return for the period the person was registered.
Q. Who don’t have to fine GSTR-10?
Ans: Form GSTR-10 is required to be filed by every taxpayer except:
- Input Service Distributor
- Non-resident taxable persons
- TDS Deductor – Persons required to deduct TDS u/s 51
- Persons paying tax u/s 10 (Composition Taxpayer)
- TCS Collector – Persons required to collect TCS u/s 52
Q. Can I take new GST No. after cancellation of old one?
Ans: Yes, you can cancel the previous registration and apply for new one.
Q. When can the GST Officer Cancel GST Registration?
- A registered person violates the Act or any rules under it.
- A person under the Composition Scheme who doesn’t furnish returns for 3 consecutive tax periods.
- Any registered person who doesn’t furnish returns for a continuous period of 6 months.
- Any person who takes voluntary registration but doesn’t start business within 6 months from the date of registration.
- Registration has been obtained by illegal means, i.e. fraud, willful misstatement or suppression of facts.
If the GST registration of a seller is cancelled with retrospective effect, it may result in denial of credits to the buyers who have purchased from such dealers.
The concerned person will receive a legal notice showing the cause of registration and will be given an opportunity to explain themselves before the actual cancellation.
Q. When can the taxpayers apply for cancellation of GST registration?
- Discontinuance or closure of the business
- Taxable person ceases to be liable to pay tax
- Transfer of business on account of amalgamation, merger de-merger, sale, leased or otherwise
- Change in constitution of business leading to change in PAN
- Registered voluntarily but did not commence any business within specified time
- A taxable person not liable any longer to be registered under GST Act.
Q. Is Payment of Pending Tax required after cancellation?
Ans. Yes, the person whose GSTIN cancelled will have to pay all the dues and liable taxes prior to cancellation. Either by debiting E-credit ledger or cash ledger.
Q. How to reverse the ITC held in the ledgers?
Ans. In case of inputs, the person will have to pay higher of
- the input credit in the semi-furnished/ furnished/raw stock of goods one day before the date of cancellation or
- Output taxes payable on these goods. (If tax invoices are not available then the ITC is reversed on the prevailing market price on the date of cancellation)
In case of capital goods or plant and machinery, the person will have to pay higher of
- the input credit back which was taken on these capital goods or P&M, possibly reduced by a certain percentage, or
- the tax applicable on the transaction value of goods. (If tax invoices are not available then the ITC is reversed on the basis of prevailing market price on the date of cancellation)
Q. How to cancel the GSTIN ?
Ans.Following are the steps for online cancellation –
- Login to the site gst.gov.in using the username and password;
- Navigate to the Services > Registration > Application for cancellation of registration option.
- Form GST REG-16 is the application form which would be opened by navigating the above option.
- Details like GSTIN, the name of the business and address would be auto-filled;
- From the drop-down list, the reason for cancellation needs to be selected by the applicant;
- Enter the value of stock and respective tax liability of the stock;
- Enter the value to set-off the tax liability either from the Electronic cash ledger or Electronic credit ledger or both;
- Tick the verification box and mention the name of authorized signatory and place;
- Now select SUBMIT WITH DSC OR SUBMIT WITH EVC.
Following persons are eligible to sign the application form digitally –
|CONSTITUTION||PERSON AUTHORISED TO SIGN THE FORM DIGITALLY|
|Partnership||Managing or authorized partners|
|Private Limited Company||Managing or whole time directors or chief executive officers|
|Public Limited Company||Managing or whole time directors or chief executive officers|
|Society/club/trust/AOP||Members of the managing committee|
|Foreign company||Authorized person in India|
|Others||Person In Charge|
Q. What is the procedure for cancellation of GST registration in case of death of sole proprietor?
Ans. In case of death of the sole proprietor, the legal heir / successor of the sole proprietor will file an application for cancellation of GST registration in form GST REG-16, manually. The legal heirs will file their application before the concerned tax authorities
Q. Can I file for amendment of Core fields after applying for cancellation of GST registration?
Ans: Once application for cancellation of registration is submitted and ARN got generated, no amendment of Core fields can be done.
Q. I was issued a temporary-ID by Suo Moto (by the officer on its own action) registration. Can I file for cancellation of this GST registration?
Ans: No. You cannot file for cancellation of Suo Moto registration. However, you can file an appeal against the issuance of Suo Moto registration to you at the appropriate forum, as provided in law.
Q. How to view the ARN of GST cancellation request?
Ans. For this login to the portal go to the Services > Registration > Track Application Status option.
Q. What are the forms in the process of GST registration?
a)GST REG 16: Application for the cancellation of registration.
b)GST REG 17: Notice of show cause/cancellation to the registered taxpayer by an authorized GST officer ..
c)GST REG 18: Reply of the show cause notice within 7 days of issuance of the notice giving the explanation of safeguarding the cancellation of registration.
d)GST REG 19: GST officer issue a formal order for the cancellation of GST registration. The order for sending the notice must be under 30 days from the date of application or the response date in GST REG 18 form.
e)GST REG 20: The show cause notice when satisfied by the GST officer can direct for the revoke of any proceedings towards the cancellation of the registration and he should pass the order in the Form GST REG 20.
Q. I have applied for cancellation of GST Registration as our turnover remains below the threshold limit of 20 lacs but the status of the application is still under process from the department. What about GST return as from the date of application for cancellation of registration we have not charged and not collected GST amount. so what should I do?
Ans: As per the CGST Amendment Act 2018, from the date of submission of the application for cancellation of GSTIN you don’t have to charge GST on supply and you are not require to furnish any return.
Q.There is no time limit for a department to cancel the registration after application by the assessee. So what assessee shall do, to continue file returns after application or stop after application?
Ans. The date of application will be deemed to be the date of cancellation as per new CGST Amendment ACT,2018. You only need to file GST returns till the date of application.
In Other words, Date of filing of REG-16 will be the date of cancellation of registration, if approved by GST Officer.
Q. I have taken GST Registration but not started the business. Also, If I do not file a nil return on time, I ahave to pay penalty too. I want to go for cancellation but it says I can’t go for cancellation before 1 year of GST registration! Why is this rule for 1 year? Is there any way I can cancel my GST? Also, do I need to pay those penalties charged because of non-filing of nil return on time?
Ans. Now taxpayer can cancel their registration before 1 year. So you can cancel your registration now but for cancellation, you have first to file all the returns with penalty till the month of cancellation.
Q. We want to cancel our GST Registration (Composite Dealer) in February. How can we file the return until Feb where the form for filing return is not available.
Ans. Composition dealer have to file their return quarterly. As you are cancelling your GSTIN in Feb month, you need to show details up to Feb month in Jan-Mar Quarter return, which will be available after the march.
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