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Should I keep filing NIL GST return until GST cancellation is approved?

Caclubuser (Accountant) (98 Points)

28 September 2019

Dear Experts,

I am a composite taxpayer under GST and my September, 19 return is filed. My annual turnover is below the GST threshold limit i.e. Rs. 40 lakhs. That’s why I am going to cancel my GST registration under the reason for cancellation ‘Ceased to be liable to pay tax’ and the date from which registration is to be cancelled is 01.09.2019. As the reason for cancellation is not ‘Discontinuance of business’, is it proper to keep filing NIL GST return until cancellation is approved?

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6 Replies

unnikrishnan P (Tax Practitioner) (187 Points)
Replied 28 September 2019

GSTIN may be cancelled only after complete verification by the CTO. All the tax liability should be paid and returns up to the date mentioned in cancellation request should be filed.

pallab saikia (SERVICE) (96 Points)
Replied 28 September 2019

After approval, you have to file the Final Return(GSTR-10).

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 29 September 2019

Dear Pallab

As per Section 45 of CGST act composit dealer are not require to file GSTR 10

pallab saikia (SERVICE) (96 Points)
Replied 29 September 2019

Yes sir !!

Caclubuser (Accountant) (98 Points)
Replied 02 October 2019

I understand. But, is filing 'Nil GST return' until approval of Cancellation application logical as my business will continue and there will be turnover in the next quarters. I am cancelling the GST registration for the threshold limit, not for closure of business. My turnover is below Rs. 40 lakhs every year. In case of closure of business, filing Nil GST return until approval would be logical as there actually would not be any turnover. My main confusion is on the type of return - NIl or not?

My annual turnover is below the GST threshold limit i.e. Rs. 40 lakhs.

Read more at: https://www.caclubindia.com/forum/should-i-keep-filing-nil-gst-return-until-gst-cancellation-is-approved--530234.asp?offset=1#reply

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 03 October 2019

AS PER SECTION 29 OF CGST ACT READ WITH RULE 21A :

WHERE THE REGISTERED PERSON HAS APPLIED FOR CANCELLATION OF REGISTRATION SHALL BE DEEMED TO BE SUSPENDED FROM THE DATE OF SUBMISSION OF APPLICATION. HENCE NO NEED TO FILE ANY RETURN THEREAFTER

FOR MORE DETAIL CAN REFER CIRCULAR 89/7/2019 GST