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What is the process of surrender of GST number?
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
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See lessKeep 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.
In what conditions GST registration is cancelled by department?
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:
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See lessNon-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.
How to resume cancelled GST registration?
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
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See lessAfter 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.
Can we apply for surrender of GST number?
Yes, you can apply for the surrender of your GST registration if you no longer meet the eligibility criteria or if you wish to discontinue your GST compliance. Here’s what you need to know: Eligibility for Surrender:If your business turnover falls below the threshold, or if you are no longer engagedRead more
Yes, you can apply for the surrender of your GST registration if you no longer meet the eligibility criteria or if you wish to discontinue your GST compliance. Here’s what you need to know:
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See lessEligibility for Surrender:
If your business turnover falls below the threshold, or if you are no longer engaged in any taxable activities, you may opt to surrender your GST registration.
Relevant Provisions:
Under the CGST Act, provisions allow taxpayers to voluntarily surrender their GST number. This process is intended to help businesses avoid unnecessary compliance if they are no longer required to be registered.
Procedure to Surrender Your GST Number:
Log in to the GST Portal:
Access your account on the official GST portal.
Submit an Application:
Fill out the form for cancellation/surrender of registration, providing the required details and reasons.
Compliance Check:
Ensure that all pending returns are filed and any outstanding tax liabilities or refunds are settled.
Confirmation:
Once your application is processed, you will receive confirmation that your GST registration has been surrendered.
Important Reminder:
Surrendering your GST number means you can no longer collect GST on your sales or claim input tax credits. Make sure this is the right step for your business before applying.
What is the penalty for not filing of GST return?
If you fail to file your GST return by the due date, you can incur a penalty under the GST law. Here’s a straightforward explanation: 1. Daily Penalty: General Taxpayers:You may be charged a penalty of ₹50 per day for each day the return is late. Small Taxpayers:If your aggregate turnover is up to ₹Read more
If you fail to file your GST return by the due date, you can incur a penalty under the GST law. Here’s a straightforward explanation:
1. Daily Penalty:
General Taxpayers:
You may be charged a penalty of ₹50 per day for each day the return is late.
Small Taxpayers:
If your aggregate turnover is up to ₹1.5 crore, the penalty is typically ₹20 per day.
2. Maximum Limit:
The daily penalties accumulate up to a maximum limit, which is generally ₹5,000 for most taxpayers and ₹1,000 for small taxpayers.
3. Additional Considerations:
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See lessInterest:
Note that aside from the penalty, interest may also be charged on any tax due if the return is not filed on time.
Continuous Non-Filing:
If returns are not filed for a continuous period, the tax authorities may take further actions, such as restrictions on claiming input tax credits.
What is reversed charge in GST?
Reverse charge is a mechanism under the Goods and Services Tax (GST) system where the responsibility for paying GST shifts from the supplier to the recipient. This means that instead of the seller collecting the tax from the buyer, the buyer is required to pay the GST directly to the government. KeyRead more
Reverse charge is a mechanism under the Goods and Services Tax (GST) system where the responsibility for paying GST shifts from the supplier to the recipient. This means that instead of the seller collecting the tax from the buyer, the buyer is required to pay the GST directly to the government.
Key Points:
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See lessLiability Shift:
Under the reverse charge mechanism (RCM), if you are the recipient of certain specified goods or services, you must pay the applicable GST even if the supplier does not charge it.
Applicable Situations:
Reverse charge is applicable in specific cases mandated by the GST law. This can include:
Certain categories of goods and services notified by the government.
Supplies from unregistered persons where the recipient is registered.
Transactions involving government departments or agencies.
Relevant Provisions:
The provisions for reverse charge are primarily found in the GST Acts (both CGST and IGST), which outline the circumstances and conditions under which RCM applies.
Compliance:
As a recipient, if you fall under the reverse charge mechanism, you must:
Pay the GST on the purchase.
Ensure proper accounting and reporting in your GST returns.
Claim input tax credit (if eligible) on the tax paid under reverse charge.
What is the penalty for not registering in GST?
A:If you’re required to register under GST and fail to do so, the law imposes a penalty to discourage non-compliance. Here’s what you need to know: Penalty Provision:Under the CGST Act, if you do not register within the prescribed time, you may face a penalty. This penalty is generally calculated asRead more
A:
If you’re required to register under GST and fail to do so, the law imposes a penalty to discourage non-compliance. Here’s what you need to know:
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See lessPenalty Provision:
Under the CGST Act, if you do not register within the prescribed time, you may face a penalty. This penalty is generally calculated as a percentage of the tax that should have been collected on your turnover. In practice, it is often around 10% of the tax due on the turnover that required registration, with a minimum penalty amount prescribed by the authorities.
Additional Charges:
Along with the penalty, interest may be charged on the unpaid tax amount until you complete your registration and clear the outstanding dues.
Importance of Timely Registration:
Registering on time not only helps you avoid these financial penalties and interest but also ensures that you can avail input tax credits and comply with other GST compliance requirements.