The GST Council headed by the Finance Minister Arun Jaitley has done away with the one year lock in period required to cancel GST registration. This means, the mutual fund distributors can cancel their GST registration to avail tax exemption.
In a press release, the GST council said, “Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of registration even before the expiry of one year from the effective date of registration.”
So far, distributors who had taken GST registration on voluntary basis have no relaxation. These distributors had to wait for one year to cancel or wait for the department to enable online option.
Earlier, many distributors earning less than Rs.20 lakh took GST registration voluntarily to avail the benefits of input credit. However, the GST council had deferred the implementation of reverse charge mechanism, which has benefited distributors earning less than Rs.20 lakh and who had not obtained GST registration.
For distributors who have migrated from service tax regime to GST, the council has extended the date for cancellation of registration to March 31, 2018. “For migrated taxpayers, the last date for filing FORM GST REG-29 for cancellation of registration is being extended by further three months till 31st March, 2018,” said the council.
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 fill a separate form called GST-REG-16.
