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Cancellation of GST No

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Ravi Chauhan

Inter CA

88 Points Posted on 24 July 2020

One person has took GST No on voluntary basis on 1.4.2020 and has not filed any return till date.

He has only 1 client with turnover of 1800000.

3 Invoices(1/month) has been issued till now. Now that client is asking to issue Bill without GST as it will lead to high cost.

Can that person cancel his GST No on the basis of Turnover is less than 2000000 from retrospective date 1.4.2020 so that he will not be liable to pay GST on 3 bills issued as client is denying to pay GST?

Replies (2)

Quick Summary

A business owner voluntarily registered for GST in April 2020 but has only one client and hasn't filed returns. They wish to cancel their GST number retrospectively to avoid paying GST on three invoices issued, as their client refuses to pay the extra cost. However, it's confirmed that retrospective cancellation isn't possible for voluntary registrations under Section 29(1)(c) of the CGST Act 2017.

Shivam RC

Student

7666 Points Posted on 24 July 2020

No Sir you cannot cancel your Registration now by virtue of Section 29(1) clause (c). You have taken GST Registration Voluntarily [ Section 25(3) of the CGST Act 2017 ].