GST Cancellation procedure and payment

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Accounts Officer & In charge
2441 Points Posted on 08 April 2020

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? 

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On 08 April 2020 at 14:52 Report
Replies (10)
Quick Summary
This discussion explains the procedure for cancelling a voluntary GST registration when there's existing stock. It covers reversing Input Tax Credit (ITC) on closing stock, paying any outstanding liabilities via DRC-03 if ITC has been utilised, and the process of applying for cancellation on the GST portal. The advice clarifies that re-registration is possible for voluntary cancellations, but not if the department cancels the GSTIN.

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Student
155 Points Posted on 08 April 2020
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
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On 08 April 2020 at 15:07
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Accounts Officer & In charge
2441 Points Posted on 08 April 2020
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.

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On 08 April 2020 at 15:10
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Student
155 Points Posted on 08 April 2020
Is the form number correct? If so, descripttion please.....
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On 08 April 2020 at 15:23
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"Do the Right Thing...!!!"
77792 Points Posted on 08 April 2020
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...?!
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On 08 April 2020 at 19:49
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Student CA Final
165 Points Posted on 08 April 2020
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.
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On 08 April 2020 at 19:56
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"Do the Right Thing...!!!"
77792 Points Posted on 08 April 2020
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.
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On 08 April 2020 at 20:05
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Student
155 Points Posted on 08 April 2020
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
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On 08 April 2020 at 20:53
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"Do the Right Thing...!!!"
77792 Points Posted on 08 April 2020
No need any of the payments if don't have any liabilities by the dealer...
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On 08 April 2020 at 20:55
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Student
155 Points Posted on 08 April 2020
Yes Sir you are correct.
But in the given scenario, there is closing stock and what about ITC if it been already utilised?
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On 08 April 2020 at 21:01
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Accounts Officer & In charge
2441 Points Posted on 09 April 2020
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.

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On 09 April 2020 at 08:32

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