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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    If your GST registration has been cancelled—either voluntarily or by the tax authorities—you may have the option to restore it if your business operations have resumed. Here’s a quick guide on how to do that: Step 1: Check the Cancellation Status and Time Limit If your registration was cancelled andRead more

    If your GST registration has been cancelled—either voluntarily or by the tax authorities—you may have the option to restore it if your business operations have resumed. Here’s a quick guide on how to do that:

    Step 1: Check the Cancellation Status and Time Limit

    • If your registration was cancelled and you wish to resume your business, you need to check whether you’re still within the allowed window for restoration.

    • Typically, you can apply for restoration within a prescribed period (usually within 30 days from the cancellation date). If you miss this window, you might have to register as a new taxpayer.

    Step 2: Log In to the GST Portal

    • Visit the official GST portal and log in using your credentials.

    Step 3: Submit an Application for Restoration

    • Navigate to the registration section and look for the option to “Restore Registration” or “Resume Registration.”

    • Complete the application form, providing all the required details and the reason for restoration (such as resumption of business).

    Step 4: File All Pending Returns and Clear Outstanding Dues

    • Ensure that any pending GST returns are filed.

    • Settle any outstanding taxes or interest to avoid complications during the restoration process.

    Step 5: Await Approval

    • After submitting your application, the GST authorities will review your request.

    • If approved, your GST registration will be restored, and you can continue with your business activities under the same GSTIN.

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    The GST Department may cancel a GST registration if a taxpayer fails to comply with certain requirements. Here are the main conditions under which cancellation can occur: Non-Filing of Returns:If a registered taxpayer fails to file GST returns for a continuous period (usually six months), the departRead more

    The GST Department may cancel a GST registration if a taxpayer fails to comply with certain requirements. Here are the main conditions under which cancellation can occur:

    • Non-Filing of Returns:
      If a registered taxpayer fails to file GST returns for a continuous period (usually six months), the department may cancel the registration. This is to ensure active compliance—if you aren’t filing returns, your registration might be considered dormant.

    • Failure to Comply with Corrective Notices:
      When the department issues notices for discrepancies or non-compliance (for example, incorrect information in the registration application) and the taxpayer fails to respond or rectify the issues, cancellation can be initiated.

    • Discontinuation of Business:
      If there is clear evidence that the business has ceased operations or the taxpayer’s turnover remains consistently below the prescribed threshold, the department may cancel the registration.

    • False or Misleading Information:
      If the information provided during registration is found to be false or misleading, the GST registration may be cancelled. This ensures the integrity of the registration process.

    • Other Non-Compliance Issues:
      Any other significant non-compliance with GST provisions—for example, failure to maintain proper records or adhere to statutory requirements—can also lead to cancellation.

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    If your business no longer requires GST registration—perhaps because you’ve ceased operations or your turnover falls below the threshold—you can surrender your GST number. Here’s a clear, step-by-step process: 1. Prepare for Surrender Clear Pending Compliance:Ensure that all GST returns are filed anRead more

    If your business no longer requires GST registration—perhaps because you’ve ceased operations or your turnover falls below the threshold—you can surrender your GST number. Here’s a clear, step-by-step process:

    1. Prepare for Surrender

    • Clear Pending Compliance:
      Ensure that all GST returns are filed and any outstanding tax or interest liabilities are settled. This is crucial before initiating the surrender process.

    • Review Your Business Status:
      Confirm that your business no longer meets the mandatory registration criteria.

    2. Log In to the GST Portal

    • Access Your Account:
      Use your credentials to log in to the official GST portal. This is where you’ll initiate the surrender process.

    3. Submit the Cancellation Application

    • Find the Cancellation Option:
      In the portal’s dashboard, look for the option to “Cancel/ Surrender Registration”.

    • Fill Out the Form:
      Complete the required form (commonly known as GST REG-16). Provide accurate details about your business and the reason for surrendering your GST registration.

    • Upload Supporting Documents:
      Attach any necessary documentation that confirms your business has either ceased operations or no longer meets the criteria for registration.

    4. Submit and Wait for Processing

    • Application Submission:
      Once the form is completed and all documents are attached, submit your application.

    • Review by the Authorities:
      The jurisdictional officer will review your request. If everything is in order, your GST registration will be canceled.

    • Confirmation:
      You’ll receive a notification from the GST department confirming the cancellation of your GST number.

    5. Post-Cancellation

    • Keep Records:
      Retain a copy of the cancellation confirmation and related documents for your records.

    • Update Your Business Practices:
      Ensure that you update your invoicing and accounting systems to reflect the change.

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CA Sanjiv Kumar
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Yes, GST applicable on delayed charges recovered from client by a stock broker. UP - Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST. Applicant is engaged primarily in business of providing services of stockRead more

    Yes, GST applicable on delayed charges recovered from client by a stock broker.

    UP – Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST.

    Applicant is engaged primarily in business of providing services of stock broking i.e. purchasing and selling of shares on behalf of clients on exchange platform by virtue of being a recognized BSE/NSE appointed stock broker- Applicant is seeking advance ruling as regards taxability on delayed payments charges on reimbursement of amount by client to applicant, where client failed to pay amount paid to Stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI Regulation norms and deducted by Stock Exchange from applicant’s account being purchase consideration of securities which are neither goods nor services under GST.

    According to Section 15 of the Central Goods and Services Tax Act, 2017/Section 15 of the Uttar Pradesh Goods and Services Tax Act, 2017  the service is Taxable supply.

    UP AAR held that delayed payment charges squarely get covered under GST for purpose of taxation.

    UP AAR held that applicant is regularly providing services of ‘trading of securities on behalf of customers’ which is a supply of services on which applicant is admittedly paying GST and delayed payments charges are also linked to said services of ‘trading of securities on behalf of customers’ and GST on same shall be payable in view of section 15(2)(d). Thus, applicant is liable to pay GST on delayed payment of charges which are overdue from client towards trading of securities and reimbursed to it.

    SPFL Securities Ltd., In re
    [2021] (AAR- UTTAR PRADESH)

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CA Vishnu Ram
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12% Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST. It is covered under Heading No. 9966 i.e. 'servRead more

    The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12%

    Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST.

    It is covered under Heading No. 9966 i.e. ‘services by way of giving on hire to a state transport undertaking a motor vehicle meant to carry more than twelve passengers’ in terms of Notification No. 12/2017-CT(R), dated 28-6-2017.

    Said case is clearly covered by Sl. No. 10 of Notification No. 11/2017-CT (Rate), dated 28-6-2017 in as much as there is a Rental services of transport vehicles with or without operators and therefore for period up to 13-10-2017, applicant’s activity would attract GST at rate of 18 per cent and after Sl. No. 10 has been amended w.e.f. 13-10-2017, applicant will have to pay GST at rate of 12 per cent

     

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service. Accordingly GST is not leviable on secondment of employees. In a similar case, Comm. Appeal Jaipur EXCISEST/VAT  held that no Service Tax wouRead more

    Here the relationship of employer and employee exists between the seconded employee and subsidiary Company and thus the same is out of the meaning of service.

    Accordingly GST is not leviable on secondment of employees.

    In a similar case, Comm. Appeal Jaipur EXCISEST/VAT  held that no Service Tax would be levied on reimbursement made by the Indian Company to its parent company for employee secondment. It was held that there exists an employer and employee relationship between the seconded employee and Indian Company and thus the same is out of the meaning of service as defined under section 65B(44) of the Finance Act, 1994 and thus not exigible to Service Tax. Please refer below case laws

    Imasen Manufacturing India (P.) Ltd.
    [2021] 128 taxmann.com 255 (Commissioner Appeals – GST- Rajasthan)

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CA Sanjiv Kumar
Enlightened
Asked: In:

  1. Ramesh Sharma Enlightened

    GST registration is required for Charitable Trust running medical store to give medicines without profit. Since charitable Trust is running a medical store, and selling medicines to customers at a lower rate with no profit, sale of medicine by Trust would be a taxable supply of goods; aggregate turnRead more

    GST registration is required for Charitable Trust running medical store to give medicines without profit.

    Since charitable Trust is running a medical store, and selling medicines to customers at a lower rate with no profit, sale of medicine by Trust would be a taxable supply of goods; aggregate turnover exceeding threshold limit, Trust would have to obtain registration

     

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RAVINDRA DASHORE
Beginner
Asked: In:

  1. CA Vishnu Ram Enlightened
    This answer was edited.

    Hi, Services under heading Manufacturing services on physical inputs (goods) owned by others are covered under SAC Code 998821. This service code includes textile fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services,Read more

    Hi,

    Services under heading Manufacturing services on physical inputs (goods) owned by others are covered under SAC Code 998821. This service code includes textile fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services, made-up textile article manufacturing services, carpet and rug manufacturing services, cordage, rope, twine, and netting manufacturing services, and other textile manufacturing services.

    Following is the description of this code:

    Job Work for Textile and Apparel Manufacturing

    S.No. SAC Code Services
    1 SAC Code 998821 Textile manufacturing services

    Following is the list of job work GST Rate applicable thereon for your ready reference:

    Job Work GST Rate %
    Dyeing (Grey cloth to dyed cloth) 5
    Bleaching (Grey cloth to bleached cloth) 5
    Rotary Printing (All overprinting on dyed cloth) 5
     Raising Brushing and shearing (Removing shrinkage in cloth) 5
    Fabric Cutting (Fabric is cut in cloth bit) 18
     Chest Embroidery (Embroidery on cloth bit) 18
     Chest Printing (Printing on cloth bit)  18
    Sewing (Swing on cloth bit) 18
    Garment washing (washing of stitched garment ) 18
    Kaja/Buttoning (Kaja preparation or fixing button in the garment) 18
    Hand Embroidery (Embroidery on garments) 18
    Checking, ironing, and packing (Checking, ironing & Packaging of garments) 18
    Other Job Work 18

    In your case, GST on Chest Printing will be 18%.

    Regards.

     

     

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