Gst query on registration

Hi,

My query

We are unable to complete the GST migration process within the stipulated period. As a result, the GST number alloted during migration was automatically cancelled. Meantime, we had raised invoices on clients by quoting the GST number . When we were about to discharge the GST liaiblity in the portal, we were advised to apply for new GST registration. Due to some technical issues, the registration got delayed and the GST number got alloted only in April in the current financial year.

The new registration is effective only from the current month (i.e., April 2018), where as we need to discharge the liability for previous financial year (i.e., 2017-18) and file the GSTR-3B and GSTR-1 accordingly. Kindly advise how to proceed and regularise the tax liability and also invoices raised on the clients with the old GST registration number.?

As per sec 32 of CGST Act, 2017 " A person who is not registered shall not collect in respect of supply of goods or services or both any amount of taxes under this act"

Hence you were not registered under the GST Act, and hence not liable to collect any amount of taxes from your customers

Also please note that Sec 76 of CGST Act, 2017 says that every person who has collected from any other person any amount representing as taxes and if colleccted then such amount has to be paid to the Government.

Secondly you customers would have taken Input tax credit of the GST charged by you on the invoice issued by you to them. Non Filing of returns and Non Payment of taxes by you for the period (2017-18) would lead to non availability of Input tax credit to your customers.

The Better Option would be to pay back the tax amount collected to your customers and also inform them that as the registration process was not complete in the year 2017-18 you could not file the return and pay the taxes accordingly.

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Ravichander RC

CA Deepak kumar

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