GST Cancellation procedure and payment

284 views 10 replies

Avinash Jeevan Dsouza

Accounts Officer & In charge

3303 Points Joined August 2014

Hello everyone!!

One of my friend wants to cancel the GST registration(regular scheme). And he is having the stock of Rs. 2,00,000 and GST on stock is around 35,000. He has filled the GST return for the month of march 2020 and also he has filed the GST1 for the quarter Jan-20 to Mar-20. Reason for cancellation is he has not reached the threshold limit for last two financial year.

What will be procedure to cancel?
How to make the payment ?

In future if he wants can he re register?

Replies (10)

mvramana

Student

285 Points Joined April 2012

1. Reverse the ITC if credit ledger shows the balance. If not there, pay in cash through DRC-03
2.Apply for cancellation
3.After receiving cancellation order, file GSTR-10

Avinash Jeevan Dsouza

Accounts Officer & In charge

3303 Points Joined August 2014

Originally posted by : mvramana
	1. Reverse the ITC if credit ledger shows the balance. If not there, pay in cash through DRC-032.Apply for cancellation3.After receiving cancellation order, file GSTR-10

What is DRC-032. Can you please explain it step by step.

mvramana

Student

285 Points Joined April 2012

Is the form number correct? If so, descripttion please.....

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

1. Apply cancellation in GST portal...

3. Yes... He is going to cancel voluntarily then He can register again if want in future. But, dept cancelled the gstin then no way for the same Pan....

2. Payment...?! why payment...?!

suraj

Student CA Final

288 Points Joined February 2014

If you have any liability then you need to pay through DRC-03 otherwise not.
DRC-03 is a form which allow taxpayer to make payment of any liability voluntary before issse of SCN .IF SCN is issued then you need to make payment within 30 days of issuance of SCN.

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

If GSTIN not cancelled till date then better to file current GST returns and also make if any payments and can be reverse any ITC through GSTR 3B return...
No need requirement for DRC-03 form...
It's mostly using previous years liability. In current year and as per Above Your reason not required DRC-03 form.

mvramana

Student

285 Points Joined April 2012

If ITC relating to your closing stock laying down at the time of application for cancellation had been already adjusted against the outward supply, then in such case the ITC to the extent of utilization shall be paid in cash through DRC-03.

Invite your views

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

No need any of the payments if don't have any liabilities by the dealer...

mvramana

Student

285 Points Joined April 2012

Yes Sir you are correct.
But in the given scenario, there is closing stock and what about ITC if it been already utilised?

Avinash Jeevan Dsouza

Accounts Officer & In charge

3303 Points Joined August 2014

Originally posted by : RAJA P M
	1. Apply cancellation in GST portal...3. Yes... He is going to cancel voluntarily then He can register again if want in future. But, dept cancelled the gstin then no way for the same Pan.... 2. Payment...?! why payment...?!

Thank you for your reply. We are having the closing stock and ITC on the stock is already claimed.