I applied for GST registration cancellation four months ago. However, the department concerned is yet to cancel my GST registration number. What should I do?
Rajesh Jogdand, Mumbai
The GST portal may not accept your application form if you have any GST payment pending as on the date of application. Also, you may not know if the system has accepted or rejected your cancellation request. In most cases, you will have to check with the local nodal officer for the status on your GST. It is better to pay your GST amount before applying for GST cancellation.
While a few experts believe that distributors will have to pay all pending GST before the date of application, others believe that distributors will have to pay GST until March 2018 to cancel their GST registration.
Mumbai based tax consultant ZM Kapasi says that mutual fund distributors will have to pay GST up to March 2018 to cancel their GST registration number. “Many distributors have been facing this issue as the GST portal has not accepted their registration cancellation. In my view, they will have to pay GST and reapply for cancelation.”
Ravikumar Somasi, General Manager, Karvy Computershare says, “As per the extant rules, a registered dealer requesting for cancellation should submit electronically all the relevant forms, file returns, clear GST liability thereon, if any, and submit the proofs within 30 days from the date of cancellation request.”
Earlier, many distributors earning less than Rs.20 a year lakh took GST registration voluntarily to avail of the benefits of input credit. However, the GST council had deferred the implementation of reverse charge mechanism till June 30, 2018, which has benefited distributors earning less than Rs.20 lakh and who had not obtained GST registration.
You can cancel your GST registration by clicking here. Once you have logged in with your credentials, you will have to click on ‘cancellation of provisional registration’ appearing on the extreme right hand side. You will have to mention the reason by simply stating that your turnover is less than Rs.20 lakh. Now, if you have not issued any tax invoice so far, you are good to cancel your GST registration by submitting it. However, if you have issued tax invoice, you will have to wait a little, as the government is yet to issue a separate form called GST-REG-16.
Mumbai based CA, Yogendra Jain, advises distributors to submit a physical copy of the application form and acknowledgement to the nodal officer after applying for the cancellation online. “By doing this, you put the onus of cancelling GST registration on the nodal agency. As a result, they would ensure that your GST registration gets cancelled on time.”
If you have requested for GST registration and paid all pending GST, follow this process to get it done.
- Login to ‘GST Portal’ using your log-in ID
- Click on ‘Submit Grievance’
- Select the category as ‘Others’ from the drop down
- Post your grievance as ‘GSTIN cancellation pending’