Surrender GST

Save Share

This query is : Resolved

Quick Summary

If you need to surrender your GST number for a proprietorship firm while holding a bank CC limit, it's crucial to first obtain a No Objection Certificate (NOC) from your bank. Banks often require an active GST number for CC limits, so confirm this won't affect your facility. After securing bank consent, proceed to cancel your GST registration via the GST portal. Remember to file a final GSTR-10 return within three months of cancellation and update all other relevant registrations.

Clayton cera

Clayton cera (Querist)
Follow

21 May 2025 How Can I surrender GST no. for my prop. Firm while I am having CC limit with bank.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

22 May 2025 Generally not eligible, as banks insist on an active GST number, you may need to retain it or negotiate alternative arrangements.

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

23 May 2025 File nil return up to Bank1. Understand the Implication of GST Cancellation
Before proceeding, be aware that:

GST cancellation means you cannot continue business activities requiring GST registration, like issuing taxable invoices or claiming input tax credit.

Your bank may require a valid GSTIN as part of its ongoing compliance for maintaining a CC limit.

2. Inform and Get NOC from the Bank
Since you have a CC limit:

Inform your bank manager in writing about your intention to surrender the GST number.

Request a No Objection Certificate (NOC) or written confirmation that surrendering GST will not affect your CC facility (if that's the case).

Banks typically require you to have:

A running business

Financial records including GST returns

If you're closing the business or shifting to another form (e.g., composition scheme or different PAN), this must be clarified.

3. File for GST Cancellation on GST Portal
Once the bank consents or confirms no issue, follow these steps:

Step-by-Step:
Login to GST portal: https://www.gst.gov.in

Go to Services > Registration > Application for Cancellation of Registration

Fill the form:

Reason for cancellation (e.g., closure of business, transfer, etc.)

Date of cessation of business

Upload supporting documents (NOC from bank, if needed)

File the application using DSC or EVC

4. File Final GST Return (GSTR-10)
After cancellation is approved:

You need to file GSTR-10 (Final Return) within 3 months from the date of cancellation.

This is to provide a closing summary of GST liabilities.

5. Update Other Registrations and Records
Update cancellation details in:

Bank records (to avoid compliance mismatch)

Income Tax filings

Udyam/MSME portal (if registered)

Local authorities, if any

Limit end.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now