GSTIN CANCELLATION

This query is : Resolved

DIMPY KHURANA (Querist)
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17 May 2023 DEAR SIR, I WANT TO CANCEL MY GSTIN BUT I HAVE CREDIT BALANCE OF SGST ONLY THAN HOW I SET OFF MY SGST BALANCE WITH MY STOCK. PLEASE REPLY

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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07 July 2024 If you want to cancel your GSTIN and you have a credit balance of SGST, you can utilize this balance before cancelling your registration. Here’s how you can set off your SGST credit balance with your stock:

1. **Utilization of SGST Credit:** You can use the SGST credit balance to pay off any outstanding SGST liability. This includes liabilities on sales made or services provided within your state (intra-state transactions).

2. **File GSTR-3B Returns:** Ensure that you have filed all pending GSTR-3B returns. You can adjust your SGST credit against your SGST liability reported in these returns.

3. **Adjustment Against Stock:** While GST credit cannot be directly set off against your physical stock, you can use the SGST credit to pay off any SGST liability on the sale of goods or services. If you have already paid GST on purchases and have input tax credit (ITC), this can offset your GST liability on sales.

4. **Unused Credit:** If there is any unused SGST credit after adjusting against liabilities, you can apply for a refund of the unutilized credit. This process typically involves filing the appropriate refund application (RFD-01) on the GST portal.

5. **Cancellation of GSTIN:** Once you have utilized or refunded your SGST credit, you can proceed with the cancellation of your GSTIN. The cancellation process involves submitting an application for cancellation on the GST portal.

### Steps to Cancel GSTIN:

- **Log in to GST Portal:** Log in to the GST portal using your credentials.
- **Navigate to Cancellation:** Go to Services > Registration > Application for Cancellation of Registration.
- **Fill Application:** Fill out the application form for cancellation, providing the reason for cancellation and other required details.
- **Submit Application:** Submit the application along with any supporting documents required.
- **Final Processing:** The GST department will process your application and communicate further instructions or actions required.

### Important Points to Note:

- Ensure all pending returns are filed before applying for cancellation.
- Utilize all available GST credit before cancellation to avoid any future complications.
- Follow up with the GST department regarding the status of your cancellation application.

By following these steps, you can effectively manage the utilization of your SGST credit and proceed with the cancellation of your GST registration.

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