Cancellation of gst provisional registration

Originally posted by : Ayushi Saxena
	Portal says that if invoice is issued then form 16 to be filled and gst to be paid

Don't be panic....

What will happen after cancellation?

All dues and tax liabilities prior to cancellation will still have to be paid. Such dues will not get waived off on cancellation.

On cancellation, the taxable person will have to pay tax either by-

• Reversing the input tax credit in raw materials in stock and inputs in semi-finished/finished goods held in stock on the day immediately preceding the date of cancellation
•          OR
• Paying the output tax payable on such goods,
  -whichever is higher

For capital goods, the taxable person shall pay-

• The input tax credit taken on the said capital goods reduced by a certain percentage (will be notified later)
•          OR
• The tax on the transaction value of such capital goods
  – whichever is higher.