NIL return

This query is : Resolved

sankar ponnan (Querist)
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10 March 2021 SIR-I was told a news that in case the tax payers newly registered under GST are not having any transactions up to 31-03-2021, the registration will be cancelled.
This is the true news sir?
I am having another GST number and am filing nil-return only. Because the process for that unit will be commenced from May -2021 on wards only.

Plz guide me

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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09 July 2024 As of my last update, the GST rules regarding cancellation of registration for taxpayers who have not commenced any business activities or filed any returns have been in place for some time. Here are the key points you should consider:

1. **Threshold for Cancellation:** If a GST registered taxpayer has not commenced any business operations or filed any GST returns for a specified period, the GST authorities may initiate cancellation of registration.

2. **Timeline:** The specific timelines and conditions for cancellation can vary. Generally, if there are no transactions or returns filed for a continuous period (usually six months or more), the GST authorities may issue a notice for cancellation of registration.

3. **Nil-Return Filing:** If you are registered under GST but have not started business operations or have only filed nil returns, it's essential to ensure timely compliance with filing requirements. Even if your business activities are yet to start, filing nil returns helps in maintaining compliance and avoiding cancellation notices.

4. **Impact on Registration:** If your GST registration is cancelled due to non-filing or non-commencement of business, you would need to reapply for registration if and when you start your business operations.

5. **Verification of News:** To confirm the specific regulations applicable to your situation, it's advisable to check the latest updates on the official GST portal or consult with a GST consultant or tax advisor who can provide guidance based on the most current rules and notifications.

Given your situation where one unit is yet to commence operations, continue filing nil returns to maintain compliance. If you have concerns about specific cancellation rules, reviewing the latest notifications or consulting with a GST expert would be prudent.

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