In response to my earlier article on GST Registration Cancellation & Revocation – Process, I have received many Queries related to GST Cancellation and steps to be followed after GST Cancellation. To summaries these queries, now I am writing this article in Question answer format to cover maximum possible question.
Q1- I am small trader and my turnover is below threshold limit, and I want to cancel my GST Registration. Whether, it is possible to surrender my GST Number?
Ans: If your turnover is below threshold limit and you are doing Intra state transaction only, then you have the option to apply for GST Cancellation.
Q2- I have applied for GST Cancellation 6 Months back but still no cancellation order is passed by GST Officer, whether it is mandatory to file Nil GST Return?
Ans: As per law, when you apply for GST Cancellation, you GST Number are suspended and no need to file GST Returns. But, in practical circumstances, it is suggested that, you should file you Nil GST Return till your GST is cancelled because in some cases, it is observed that, cancellation request is not accepted by officer, which may create litigation, when we file again GST Cancellation request.
Q3- Due to some unavoidable reasons, I have not filed my GST Returns for last 7 Months, now I have received show cause notice for Suo-Motto cancellation. What should I do in this situation?
Ans: As per law, if a GST Registered persons defaults in GST Return filing for continuous 6 Months, GST Officer has the power to cancel your GST Number. If you have received notice for Suo- Motto cancellation, then you should file you’re all pending GST Return as soon as possible and respond to Show cause notice online within prescribed time period.
Q4-I have done GST Sale but not filed my GST returns due to which GST Officer has done Suo- Motto cancellation and I have received nil liability GST Cancellation Order. Whether I have any liability towards GST Department for GST Collected from customers prior to GST Cancellation?
Ans: In your case, GST Officer has done Suo-Motto cancellation & passed Cancellation order and raise demand on the basis of information available with him. As you have collected GST from customers, it’s your liability to deposit the same with GST Department. As your GST is cancelled, you should pay your GST liability using GST Form DRC 03 to avoid any further litigation.
Q5- I am GST return defaulter and my GST registration has been suo-motto cancelled by GST Officer but I want to continue my GST Number. What should I do in this situation?
Ans: If your GST Registration has been Suo-Motto cancelled by GST Officer, then you have the option to file GST Revocation request within 30 days from the date of cancellation order.
Q6- I have applied for GST Revocation and my GST Revocation request has been rejected by GST Officer, what I should do in this situation?
Ans: If your GST Revocation request has been rejected by officer, you have to apply for fresh GST Registration.
Q7- My GST Registration has been cancelled 1 year back and during that period I have generated 1 E-Way bill but forgot to show that Invoice in GST Return for that period. Now, I have received demand notice from department related to Tax liability which belongs to that invoice for which E-Way bill is generated which is not shown in GST Return of that period. Now what I should do?
Ans: As you have missed that invoice while filing your GST Return but information is available with department. In this case, you are liable to pay GST Liability.
Q8- My GST Registration has been Suo-Motto cancelled by GST Department. At the time of GST Cancellation, stock in hand is Rs.1,00,000/- on which I have availed GST Input of Rs.5000/-. Whether I have to pay GST on this stock Value?
Ans: Please note that, when GST is cancelled then you have to file GST Final Return within 3 months of GST Cancellation, in which you have to provide detail of Stock in hand and input availed on that and has to pay GST Liability before filing of final return.
This article is for the purpose of information and shall not be treated as a solicitation in any manner and for any other purpose whatsoever. It shall not be used as a legal opinion and not be used for rendering any professional advice. This article is written on the basis of the author’s personal experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of other readers.
The Author “CA. Shiv Kumar Sharma” can be reached at mail –[email protected] and Mobile/Whatsapp – 9911303737/ 9716118384