One of readers from Maharashtra wrote to us with this problem.
I am a mutual fund distributor earning less than 20 lakhs but GST registered. So far, I have not raised any invoices not have availed any input tax credit.
I would like to understand if I could cancel my GST registration. If yes, could you guide me as to what steps to follow to cancel the GST registration?
Dear distributor,
You can avail the benefits of reverse charge mechanism (RCM) if you earn less than Rs.20 lakh. Also, since you have neither raised any invoices nor availed any input tax credit so far, it is prudent for you to cancel your GST registration, say tax experts.
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. 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. Since you have not issued any tax invoice so far, you are good to cancel your GST registration by submitting it.
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.