Tuesday, 15 January 2019

Cancellation of GST Registration Procedure with FAQs


Q.1 Under which circumstances can a registered Taxpayer file for cancellation of GST registration?

Ans: A registered Taxpayer can file for cancellation of GST registration on the occurrence of any of the following events:
1. Discontinuance of business or closure of business.
2. Taxable person ceases to be liable to pay tax.
3. Transfer of business on account of amalgamation, merger, de-merger, sale, leased or otherwise.
4. Change in constitution of business leading to change in PAN.
5. Registered voluntarily, but did not commence any business within specified time.
6. Taxable person no longer liable to be registered under GST Act.

Q.2 Who all can file for cancellation of GST registration?

Ans: The following can file for cancellation of GST registration:
1. Existing Taxpayer
2. Migrated Taxpayer whose application for enrolment has been approved
3. Migrated Taxpayer who has not filed any other form after filing of application for enrolment

Q.3 From where can I file for cancellation of GST registration?

Ans: Application for GST registration can be accessed from the GST Portal, after logging in.
The path is Services > Registration > Application for Cancellation of Registration.

Q.4 Who all cannot file for cancellation of GST registration?

Ans: The following people cannot file for cancellation of GST registration:
1. Persons registered as Tax Deductors / Tax Collectors
2. Persons to whom UIN has been allotted

Q.5 What is the pre-condition for cancellation of GST registration in case of amalgamation / merger / change in constitution of business?

Ans: In case of amalgamation / merger / change in constitution of business, the new entity (i.e. transferee entity) must be registered with the tax authority, and must have a valid GSTIN at the time of filing for cancellation of GST registration by the old amalgamated / merged / transferred entity.

Q.6 What is the implication of tax payable on stock while filing for cancellation of GST registration?

Ans: While filing the application for cancellation of GST registration, the Taxpayer needs to fill the value of stock and corresponding tax liability on the stock, and accordingly offset the liability (tax payable) from Electronic Cash Ledger / Electronic Credit ledger equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished goods or finished goods held in stock or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed.
In case of capital goods or plant and machinery, the person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery, whichever is higher.
In case of Nil or no amount to be entered by Taxpayer in value of stock and tax payable section, the Taxpayer can still submit the form.

Q.7 Why is the Submit button in form for cancellation of GST  registration not getting active despite filling it out?

Ans: The Submit button gets activated once all the mandatory fields (other than signatures) are filled. Please check all the mandatory fields carefully and provide information for any field that you might have missed.

Q.8 What is the duration within which Taxpayers need to file for cancellation of GST registration?

Ans: Taxpayers need to file for cancellation of GST registration within 30 days from the date from which registration is liable to be cancelled, in case of voluntary cancellation.

Q.9 Is there any limitation on filing for GST registration by Taxpayers who had registered voluntarily?

Ans: In case a Taxpayer has taken voluntary registration in GST regime, he cannot file application for cancellation of registration before the expiry of one year.

Q.10 Can I file for amendment of Core fields after applying for cancellation of GST registration?

Ans: No. Once you have submitted the application for cancellation of registration, and ARN has been generated, you will not be allowed to file for amendment of Core fields.

Q.11 Can I file for amendment of Non-Core fields after applying for cancellation of GST registration?

Ans: Yes. Once you have submitted the application for cancellation of registration, and ARN has been generated, you can file for amendment of Non-Core fields.

Q.12 I was issued a temporary-ID by Suo Moto 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.
Reason of Tax Deductions

Procedure for Cancellation of Registration

How can I file for cancellation of GST registration?

To file for cancellation of GST registration, please perform the following steps:
1. Visit the URL: https://www.gst.gov.in.
2. Login to the GST Portal with your user-ID and password.
3. Navigate to the Services > Registration > Application for Cancellation of Registration option.
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4. The form – Application for Cancellation of Registration contains three tabs. Ensure that the Basic Details tab is selected by default.
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NoteThe first tab contains pre-filled information in sections of Basic Details and Address of Principal Place of Business.
5. Either fill your Address for Future Correspondence manually, or check the option of Address same as above to copy the same address as in the Address of Principal Place of Business field.
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6. Click the SAVE & CONTINUE button.
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Notes:
·         The tab Basic Details will change to blue colour and a tick mark will appear on it indicating that all the mandatory fields under this tab have been duly filled-in.
·         The next tab Cancellation Details will get active, requiring you to make suitable selections and provide relevant information in corresponding fields.
7. Select a suitable reason from the Reason for Cancellation drop-down list.
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NotesThe following five reasons are available for selection:
a) Change in constitution of business leading to change in PAN
b) Ceased to be liable to pay tax
c) Discontinuance of business / Closure of business
d) Others
e) Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise
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Change in constitution of business leading to change in PAN:
a) Enter the date from which registration is to be cancelled.
b) 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.
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Ceased to be liable to pay tax:
a) Enter the date from which registration is to be cancelled.
b) Enter the value of stock and the corresponding tax liability on the stock.
c) Basis the entered stock details, enter the value to offset the liability (tax payable) that you wish to offset from either the Electronic Cash Ledger, or the Electronic Credit Ledger, or both.
d) On submitting the form, the amount will be deducted from the respective Electronic Cash Ledger, or the Electronic Credit Ledger, or both, and debit entries will be made.
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Discontinuance of business / Closure of business:
a) Enter the date from which registration is to be cancelled.
b) Enter the value of stock and the corresponding tax liability on the stock.
c) Basis the entered stock details, enter the value to offset the liability (tax payable) that you wish to offset from either the Electronic Cash Ledger, or the Electronic Credit Ledger, or both.
d) On submitting the form, the amount will be deducted from the respective Electronic Cash Ledger, or the Electronic Credit Ledger, or both, and debit entries will be made.
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Others:
a) Specify the reason for cancellation.
b) Enter the value of stock and the corresponding tax liability on the stock.
c) Basis the entered stock details, enter the value to offset the liability (tax payable) that you wish to offset from either the Electronic Cash Ledger, or the Electronic Credit Ledger, or both.
d) On submitting the form, the amount will be deducted from the respective Electronic Cash Ledger, or the Electronic Credit Ledger, or both, and debit entries will be made.
Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise:
a) Enter the date from which registration is to be cancelled.
b) 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.
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8. Click the SAVE & CONTINUE button.
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Notes:
·         This will mark the second tab also as complete.
·         The next tab, Verification will get activated.
9. Check the Verification statement box to declare that the information given in this form is true and correct, and that nothing has been concealed therefrom.
10. Select the name of the authorised signatory from the Name of Authorized Signatory drop-down.
11. Enter the Place of making this declaration.
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NoteNotice that the system auto-populates the authorised signatory’s designation or status.
12. Sign the form by using either your Digital Signature Certificate (DSC), or the EVC option.
Notes:
·         For the purpose of simplicity, this user manual has followed the EVC path.
·         If using a DSC, you will be required to select your registered DSC from the emSigner pop-up window and then proceed from there accordingly.
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13. Enter the OTP.
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Notes:
·         On successfully filing the application for cancellation of registration, the system will generate the ARN and display a confirmation message.
·         A confirmation message will also be sent by GST Portal on your registered mobile phone number and e-mail-ID.
·         After this stage, the concerned Tax Official will review your application and take a decision accordingly.
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14. To view the ARN, navigate to the Services > Registration > Track Application Status option.

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15. Select Submission Period radio button.
16. Enter the From and To dates between which you filed for cancellation of registration.
17. Click the SEARCH button.
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NoteThe search result will display the ARN corresponding to your filed application.
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