Voulntary registration to be surrendered

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CA Vandana Rathi (Querist)
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23 December 2019 In case a person( Medical retail person) gets registered voluntarily by mistake since June 2019 and also he is not liable to get registered under GST (not fullfiliing the conditions for compulsory registration), can he surrender his registration?

If he has received notice u/s 46 for default in furnishing returns since June 2019-Sept 2019. What action needs to be taken? Can we surrender GST registration

CA Anita Bhadra

CA Anita Bhadra (Expert)
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23 December 2019 Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.
Till that time , he need to file his returns and all the relevant provisions are applicable on him

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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23 December 2019 Yes GST registration in case of voluntary registration can only be cancelled after the expiry of one year from registration.

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CA Vandana Rathi

CA Vandana Rathi (Querist)
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24 December 2019 In this case then, we have to submit returns while also collect and pay output gst on each outward supply till completion of one year?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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24 December 2019 Yes file all your returns with applicable late fees and declaring all input and output liabilities.

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CA Vandana Rathi

CA Vandana Rathi (Querist)
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24 December 2019 GST Rules 2017-
As per Rule 20. Application for cancellation of registration.A registered person, other than a person to whom a registration has been granted under rule 12 or a person to whom a Unique Identity Number has been granted under rule 17, seeking cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, at the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner: 1[xxx]
1. In rule 20, the proviso shall be omitted by Noti.GHN-7 Dt.23/1/18, w.e.f.23/1/18, Noti.No.3/2018.
Earlier proviso: Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration.

As per above rule and omission of earlier proviso, i can conclude that voluntary registered person can go for cancellation even before expiry of one year.

CA Vandana Rathi

CA Vandana Rathi (Querist)
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24 December 2019 https://www.commercialtax.gujarat.gov.in/vatwebsite/download/cir_noti/GST_Corner/GST_Menu/GST_Rules/GST%20RULES-18%20AMEND-2018.pdf

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