One of our readers wrote to us with this problem.
I am a mutual fund distributor earning less than Rs.20 lakh a year. I have browsed through the GST portal to cancel the registration but to no avail. How can I cancel my GST registration to avail the benefits of reverse charge mechanism (RCM)?
Thirupathi Rao, ARN 17507 Vellore, Tamil Nadu
Since you earn less than RS.20 lakh a year from commission, you can avail the benefits of reverse charge mechanism (RCM). However, ensure that you include commission from other financial products to arrive at your annual income.
GST norms include commission income from all financial products such as insurance, stock broking and mutual funds to arrive at your annual income.
In addition, you have to ensure that you do not have any GST payment pending before applying for cancelation. The GST portal may not accept your application form if you have any pending GST amount.
You can cancel your GST registration by visiting this link https://services.gst.gov.in/services/login. Create your account by keying in details such as GST registration number, email id and so on. 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 fill a separate form called GST-REG-16.
In case, if you have already 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’
Note: We have written this article based on the inputs from tax experts and operational heads of a few fund houses and R&T agents. We intend to clarify your doubts on GST. This does not tantamount to be a tax advice of any nature or a recommendation. Please take advice from a qualified tax advisor for your guidance.