One of my friend wants to cancel the GST registration(regular scheme). And he is having the stock of Rs. 2,00,000 and GST on stock is around 35,000. He has filled the GST return for the month of march 2020 and also he has filed the GST1 for the quarter Jan-20 to Mar-20. Reason for cancellation is he has not reached the threshold limit for last two financial year.
What will be procedure to cancel? How to make the payment ?
08 April 2020
1. Apply cancellation in GST portal...
3. Yes... He is going to cancel voluntarily then He can register again if want in future. But, dept cancelled the gstin then no way for the same Pan....
2. Payment...?!
08 April 2020
GST REG 16 need to file electronically through Portal. Provide the details of input held in stock You are also required to give details of payment against such liability. payment of GST in stock will be by way of debiting the Electronic Credit/ Cash register. The amount payable will be the highest of the two - ITC on stock or output tax payable on stock ( whichever is higher )
11 April 2020
Agree with CA Anita Ma'am. Also Final return in GSTR 10 to be submitted within three months of the date of cancellation or date of order of cancellation, whichever is later electronically.
Also as per proviso of section 29(5) read with rule 40(2), in case of capital goods or plant and machinery, the taxable 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 under section 15, whichever is higher.
CAclubindia
