What is meant by cancellation of registration?

Cancellation of GST registration simply means that the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST.

Consequences of Cancellation

The taxpayer will not pay GST anymore

For certain businesses, registration under GST is mandatory. If the GST registration is cancelled and business is still continued, it will mean an offence under GST and heavy penalties will apply.

Who can cancel the GST registration?

Cancellation of GST registration can be done by-

*** Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.

Let us take up each case.

Cancellation when Turnover is less than 20 lakhs

Every person who was registered under old laws had to mandatorily migrate to GST. Many such persons are not liable to be registered under GST.

For example, the threshold under VAT in most states was 5 lakhs whereas it is 20 lakhs under GST. However, do make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.

Such a taxpayer can submit an application electronically in FORM GST REG-29 at the common portal.

The proper officer shall, after conducting an enquiry as required will cancel the registration.

Please take note of following -

1. Since your annual turnover is less than 20 lakh per annum so you are not required to take GST charges in the bills raised by you.

2. Having a GST registration with yourself does not oblige you or compulse you to charge GST from your end customer and then to submit in the government fund. Your annual filing with the MCA (if your Company/LLP is duly registered with Ministry of Corporate Affairs) will support your stand in this context as your annual filing will showcase your annual turnover to be less than of 20 lakh.

3. I would personally advise you to not to think on the line of submitting the GST registration number because though you are not obliged to take GST charges from your customer but with that GST registration number you can seek GST exemption on all such items which you are buying for your salon. For e.g. if you are buying a shampoo of worth Rs. 100 from the market and Rs. 10 is the tax imposed on that shampoo then you can ask for the refund of Rs. 10 vide your GST number. Once your annual turnover will surpass the figure of 20 lakh then you will charge this Rs. 10 (which was refunded to you) from your customer.

As per the GST law it is the end user who has to pay the GST. In your case the end customer are those who are visiting your salon.

Rest of the nitty gritty you can discuss with your CA as you already have an appointed CA for your business.

1)Cancellation when Turnover is less than 20 lakhs Every person who was registered under old laws had to mandatorily migrate to GST. Many such persons are not liable to be registered under GST.

Such a taxpayer can submit an application electronically in FORM GST REG-29 at the common portal.

The proper officer shall, after conducting an enquiry as required will cancel the registration

For detailed procedure refer the link https://cleartax.in/s/cancellation-gst-registration

2) The composition scheme doesnot.apply in your case as you are providing services and only Manufacturers of goods, Dealers, and Restaurants (not serving alcohol) can opt for composition scheme.

Here are the steps of cancelling on GST Portal-

Step 1

Log in to the GST Portal and click the Cancellation of Provisional Registration

Step 2

The Cancellation page opens.

Your GSTIN and name of business will show automatically.

You are required to give a reason for cancellation.

You will be asked if you have issued any tax invoices during the month.

Select "No"

Simply fill up the details of authorized signatories, place. Finally, sign off with EVC with you are a proprietorship or a partnership. LLPs & Companies must mandatorily sign with DSC.

The voluntary registration can be only cancelled after one year from date of registrarion.

The procedure for cancellation if you have not migrated from.the previous tax regim than

Application for cancellation has to be made in FORM GST REG 16.

The following details must be included in FORM GST REG 16-

Details of inputs, semi-finished, finished goods held in stock on the date on which cancellation of registration is applied

Liability thereon

Details of the payment

The proper officer has to issue an order for cancellation in FORM GST REG-19 within 30 days from date of application. The cancellation will be effective from a date determined by the officer and he will notify the taxable person.

See there is no manual way prescribed though you can write a letter to local GST jurisdictional officer and seek clarification regarding your.cancellation.

Dear Sir,

You may get answers to your doubts for cancellation of GST manually in the following link:

https://cbec-gst.gov.in/faqs-user-manual-new-gst-registration.html

Registration cancellation is possible on the portal by submitting the form.

The composition scheme person have to file the returns which are pending before the cancellation request. Will be advisable to file march 18 return and cancel the registration if at all not required.

Hello,

There is no need for you to close your GST account, rather you may prefer to file the GST return at the NIL value. You may go through the following link to get a detailed analysis about the said thing:

http://studycafe.in/2017/08/how-to-file-nil-gst-return.html

Regards

Let me know if there is some misunderstanding on my part while giving the suggestion. Also, since this is a new law I would advise you to consult a CA once.

Regards

If you have wrongly registered for GST and want to surrender your GST Registration, one can cancel GST Registration only if the annual turnover of his business is less than ₹20 lacs (total of sale and unregistered purchase).

2) Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.

3)In case of voluntary registration, no application will be considered in case of a taxable person within 1 year from registration.

Process to cancellation of GST registration

Fill form GST REG-16 application for cancellation of registration with following details:

Inputs and capital goods held in stock on the date from which cancellation of registration is sought.

Liability as on that date.

Details of the payment, if any, made against such liability.

Within 7 days, fill form GST REG-17 to show cause notice.

If show cause hearing is successful, then under form GST REG-16 order to cancel registration is done.

You may write, application in hard copies

The total GST applicable under composition scheme for manufacturer is 2%, for traders 1% and for suppliers of food items is 5%

Service providers cannot opt for composition scheme.

GST Payment has to be made out of pocket. It means that a dealer opting for Composition Scheme cannot charge GST in their Invoice. The consumer/ the receiver of supplies will not be liable to pay GST to the supplier who has opted for Composition Scheme.

The following are the advantages of registering under composition scheme:

Lesser compliance (returns, maintaining books of record, issuance of invoices)

Limited tax liability

High liquidity as taxes are at a lower ra

Let us now see the disadvantages of registering under GST composition scheme: A limited territory of business. The dealer is barred from carrying out inter-state transactions

No Input Tax Credit available to composition dealers

The taxpayer will not be eligible to supply goods through an e-commerce portal

Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration.

Every person who was registered under old laws had to mandatorily migrate to GST. Many such persons are not liable to be registered under GST.

make sure you are not making inter-state supplies since registration is mandatory for inter-state suppliers except for service providers.

Such a taxpayer can submit an application electronically in FORM GST REG-29 at the common portal.

The proper officer shall, after conducting an enquiry as required will cancel the registration.