IFAs who have migrated from service tax registration number to GST registration number can now cancel their existing GST registration online. These IFAs can avail benefits of the temporary exemption given under Reverse Charge Mechanism (RCM). However, the annual income of such IFAs should not exceed Rs.20 lakh from all sources.
Earlier this month, the GST council headed by the Finance Minister Arun Jaitley has deferred the implementation of reverse charge mechanism (RCM) until March 2018; following which, the government has introduced online facility for such business owners to cancel GST registration online.
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 for a little while, as the government is yet to issue a separate form called GST-REG-16.
In addition, distributors who have recently taken their GST registration number on voluntary basis will have to wait for some more time for clarity. A senior official from a registrar and transfer agent told Cafemutual that currently the government is considering doing away with the one year lock-in period to cancel the GST registration. If this happens, it will be a major relief to the mutual fund distributors.
Another Operational and Compliance Head of a large fund house says that the government intends to provide relief to small business owner through its decision to defer RCM until March 2018. In fact, the government has issued a circular on October 13 in this context.
“The Central Government, on the recommendations of the Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said GST Act,” said a notification issued by the Ministry of Finance on October 13.
