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CANCELLATION OF GST DUE TO BUSINESS LOSSESS.

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PALASH

Nothing

2000 Points Posted on 11 June 2020

Due to business loss an application for cancellation of GST has been filed on March 2019, so already 1 year & 2 months expired and the application is still under processing till now.

My questions :

1) Now Should i require to file GSTR 3B & GSTR 1 from March 2019 to May 2020 irrespective of the filling for application for cancellation of GST due to business lossess ? If yes then why ? If no then why ?

2) Is there any probability of Late fees for 1 years and 2 months ?

3) If client unable to pay fees to the accountant ( oral ) due to his business loss, should the ( oral ) accountant requires to file return from March 2019 to May 2020 ?

4) After consideration of the above facts, who will bear the cost of late fees for 1 year and 2 months ? Taxpayer or Oral Accountant ?

5) Now what should i do ?

Regards.

Replies (2)

Quick Summary

This discussion addresses the process of cancelling GST registration due to business losses. The user filed an application in March 2019 and is seeking clarification on whether GSTR 3B and GSTR 1 filings are still required, potential late fees, and who is responsible for any costs incurred. The advice provided suggests that once an application for cancellation is filed, further returns are generally not required, and late fees would not be applicable in this scenario.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 11 June 2020

As per Proviso to Section 29 of CGST Act, R/w Rule 21A (3) : Not required to file any return from the date of Registration is filed for cancellation.

1. No
2 Not Applicable in your case as not liable to file return.
3. it depends upon the agreement/relation between client & accountant.

4. Not applicable .

5. keep cool & enjoy as you are not required furnished any return after being filed for cancellation.

Note : The above rule is being Effective from 1/2/2019, vide Notification 3/2019 CT