GST Registrations Cancellation …..

GST Registrations Cancellation

GST Registrations Cancellation

GST is the biggest tax reform India has seen since independence. With our country still running on pre-independence laws, this is the first big step towards legal reforms. GST came into effect from 1st July, 2017 onwards and has subsumed all types of indirect taxes. Now taxpayers only have to pay one tax instead of numerous others. In other way today we learn here how GST Registrations Cancellation , and this process. 

Every taxpayer registered under any of the previous indirect taxes like, CST, VAT, excise, service tax, customs etc. must mandatorily get registered with GST and obtain unique registration number. Every other person, natural or juristic, having an annual turnover of ₹20 lacs or more (in some cases ₹10 lacs) must get registered as well. However, GST registration can be cancelled as well .

Who can initiate cancellation of GST registration?

GST registration can be cancelled either by an appropriate authority, that is, officer or the taxpayer himself or his legal heirs upon his death. However, in case of voluntary cancellation the process will be initiated only if 1 year has elapsed since the date of allotment of registration certificate.

The application for voluntary cancellation of GST registration is made in Form GST REG-16. In case of cancellation by authorities Form GST REG-17 is used to send a show-cause notice to the taxpayer. The final order for cancellation is passed by Authorities in Form GST REG-20.

When can GST registration be cancelled?

GST registration of a business can be discontinued in the following cases:

  • When business has been discontinued
  • The registered entity has violated the provisions of GST
  • The entity has been amalgamated or merged into another entity
  • There has been a change in the entity's constitution
  • The taxpayer is no longer required to get mandatory registration done under GST due to subsequent increase in threshold limit
  • The taxpayer availing composition scheme hasn't filed returns for the last three consecutive quarters of a financial year
  • The taxpayer hasn't filed returns for the last six months
  • The applicant hasn't commenced his business since six months from the date of registration
  • The entity has received registration using fraudulent means

The registration can either be cancelled from prospective or from retrospective effect. In case of cancellation from authorities the applicant will be sent a show cause notice. He will be given the opportunity to represent himself. Notice won't be sent in case legal heirs of the taxpayer file cancellation request.

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What is the tax liability upon cancellation?

Cancellation of registration either by authorities or voluntarily by the applicant doesn't amount to non-payment of existing tax liability. A taxpayer whose registration is cancelled must remit his liability either by

  • reversing his input tax credit he has received on inputs or on stock held on the day preceding the date of cancellation; or
  • remitting the output tax

whichever is higher.

In case of capital goods, the tax liability is the higher of:

  • Input tax credit on the capital goods reduced by some percentage; or
  • actual tax on the value of capital goods

Only upon payment of tax liability is a person granted NOC and his registration is deemed cancelled. 

How can the cancellation be revoked?

Revocation of GST Registrations Cancellation order is possible only in case of cancellation by an appropriate authority. The cancellation cannot be revoked if it has been done voluntarily by the taxpayer. The application for revocation of the order must be submitted by the taxpayer within 30 days from the date on the order. In case the officer rejects the application, then the applicant will be given the opportunity of being heard and make representation.

These are the provisions of cancellation of GST registration.

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Concept of Debit Note, Credit Note and Revised Invoices in GST

Concept of Debit Note, Credit Note and Revised Invoices in GST

Concept of Debit Note, Credit Note and Revised Invoices in GST ...

GST came into effect from 1st July, 2017 onwards. With the implementation of Goods and Service Tax all other indirect taxes including VAT, service tax, CST, entry tax, etc. have been repealed. Unlike older indirect taxes, GST is one tax that is applicable on the whole of India including the state of Jammu and Kashmir. While filing GST returns, taxpayers have to provide details of sales and purchases on which tax liability and input tax credit will be calculated and ascertained. We learn here Concept of Debit Note, Credit Note and Revised Invoices in GST.

Under GST Act, format for invoices has been provided wherein taxpayers have to mandatorily furnish certain details like GST Number, name of supplier, billing address, shipping address, place of supply, HSN code, rate, quantity etc. Since all the relevant details available on invoices of sellers there will surely be more transparency and ease in filing returns.

Revised invoices under GST

The concept of revised invoices is relevant for taxpayers having provisional registration under GST. With roll-out of GST new taxpayers will initially be registered on a provisional basis. Permanent registration certificate will only be granted upon completion of all kinds of formalities. All the invoices issued from the date of implementation of GST till the date of allotment of registration number must be revised within one month of receipt of registration certificate.

The dealers will have to mandatorily issue revised invoices that will contain all the necessary information as stated in GST Invoices Rules.

Supplementary invoices

Supplementary invoices are advices issued whenever original tax invoices have some discrepancy or deficiency. Under GST, if an original invoice misses out on relevant information it is revised through the issue of a supplementary invoice. The revision can also be done through issue of debit or credit notes.

Taxpayers must not confuse revised invoices with supplementary invoices, even though both are issued  to revise original invoices. Supplementary invoices are issued in case of deficiency in an original invoice and can be issued anytime to revise it whereas revised invoices are only issued in case of provisional registration and are issued within one month of getting registration certificate.

While supplementary invoices are issued to curb deficiencies, revised invoices are issued to replace bills generated during provisional registration period. 

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Credit note under GST

Credit note under GST is issued by the supplier to revise tax invoice in the following cases :

  • When original tax invoice has been issued but the actual value of taxable goods or services supplied is lesser than the value mentioned in the invoice.
  • Where original tax invoice has been issued and the amount of tax mentioned in it is more than the actual tax that is required to be paid.
  • When goods are returned by the buyer to the supplier.
  • When actual services supplied are deficient.

Every taxpayer must furnish details of credit note issued in his monthly GST returns in the same month it is issued in. Moreover, credit notes must be issued on or before 

  • The date of annual return filing; or
  • 30th September following the year to which credit notes pertain to

whichever is earlier.

Debit note under GST

Unlike credit notes, debit notes under GST do not come with any deadline. They can be issued anytime. This is because the credit note issued by the supplier will naturally match the debit note of the recipient. Debit notes are issued under following circumstances, viz.

  • When the value of taxable services and/ or goods mentioned in the tax invoice changes post issuance.
  • Tax liability mentioned in the original tax invoice changes post issuance of the invoice.

Debit as well as credit notes must contain all the essential details as asked under GST Invoice Rules.

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GST Registration Amendment

GST Registration Amendment

GST Registration Amendment --

GST is the tax reform everyone has been waiting for, for years. It finally rolled out on the 1st of July, 2017 at the stroke of midnight hour. With implementation of GST all other indirect taxes like, Service tax, VAT, CST, entry tax, excise etc. have been repealed. Now there is only one indirect tax for the whole of India and every state including Jammu and Kashmir has to follow it. He provisions as well as tax rates are similar throughout the country. Learn here to GST Registration Amendment.

Any taxpayer having VAT, Service Tax or any other indirect tax registration must mandatorily migrate to GST and obtain GST registration. Every other person who has an annual turnover of more than ₹20 lacs (₹10 pacs in some cases) will have to compulsorily get GST registration. Post registration there are various details that require amendment like, change of address, business ownership, name, contact details etc. Moreover, it is completely natural for the applicant to miss out on some details while registering with GST. To revise your registration certificate and remove discrepancies GST has laid down the following process. Lets have a look:

Form GST REG-11

Form GST REG-11, Application for Amendment in Particulars subsequent to Registration is filed when there is change in information furnished by a taxpayer in registration forms GST REG-1, GST REG-9, GST REG-7 and GST REG-10. The Form must be submitted electronically at GST Common Portal within 15 days of such change along with relevant documents as proof of the respective change.

The form must be duly signed using a digital signature and clearly mention reasons for the change in information. The form can also be submitted through a Facilitation Centre as notified from time to time by the Commissioner. The Act has also fixed a deadline for the Department to verify and accept the amendment. For businesses that do not require cancellation of registration, their Form GST REG-11 shall be accepted within 15 days of its submission. 

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Form GST REG-4

Form GST REG-4, Application for filing clarification/ additional information/ document for registration/ amendment/ cancellation/ revocation of cancellation is submitted when Form GST REG-11 does not provide all the information and there is some sort of deficiency. In such cases, the officer can ask for clarifications within 3 days of receipt of Form GST REG-11 and the applicant must submit his reply within the next 7 days in Form GST REG-4. The reply is to be submitted electronically on GST Common Portal.

Form GST REG-5

If the officer is satisfied with the clarification he will approve the revision request within the next 7 days. But if he is still not content with the reasons for revision then he will reject the application and inform the applicant in e-form GST REG-5, Order of Rejection of Application for Registration/ Amendment/ Cancellation/ Revocation of cancellation. The Form is in the format of a letter that is addressed to the applicant. It must clearly mention the reasons for rejection of application and be duly signed by the appropriate authority having proper jurisdiction.

Amendments happen all the time during a normal course of business. To keep the records updated, GST has rolled out GST REG-11, GST REG-4 and GST REG-5 e-forms. An applicant can visit the GST Common Portal and download these forms. The Act has also prescribed a deadline for the department to process the change and accept or reject the change within 15 days of submission of Form GST REG-11.

Keep your records updated with GST by filing Registration amendment forms electronically at GST portal.

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How to Transfer Existing input tax credit in GST?

How to transfer existing input tax credit in GST?

How to Transfer Existing input tax credit in GST?

At the stroke of midnight on 1st July, 2017 the most awaited tax that clubbed all indirect taxes into one single tax came into effect. The Goods and Service Tax (GST) is the one tax that is applicable on the whole of India including the state of Jammu and Kashmir. GST was the change everyone had been eagerly waiting for. We read here about how to transfer existing input tax credit in GST?

With the roll-out of GST the biggest challenge businesses are facing is smooth migration from earlier tax regime to the mammoth tax. In the whole migration process the most worrying aspect is transferability of input tax credit which they have already received or will receive after filing the return of the 1st Quarter of 2017-18 financial year in July, 2017. But entrepreneurs do not need to worry about that because GST provides you the simplest way of transferring your input tax credit to your GST account so you can set it off against your GST liability.

Input tax credit Transfer Procedure

Under Goods and Service Tax every taxpayer having registration under VAT, service tax or any other indirect tax must mandatorily get their registration number. To provide transparency and help them migrate properly GST Act has laid down Transitional Provisions. According to the Rules, every taxpayer having GST registration and eligible for input tax credit under VAT, CST, Excise, Customs etc. must file e-form GST TRAN-1 on GST Common Portal within 90 days of the date of implementation of GST, that is, from 1st July, 2017 onwards.

The Rules also give power to the Commissioner to further extend the deadline by another 90 days under special circumstances thereby giving a taxpayer a total of 180 days to set off his input tax credit, received in the 1st Quarter of the financial year. Once the tax credit is transferred to your GST account using e-form GST TRAN-1, the amount will be verified and credited to your electronic tax credit ledger maintained on GST Common Portal through Form GST PMT-2. 

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How to file e-Form GST TRAN-1?

With GST the best part is that everything is to be done online whether its return filing, payment of tax or filing a complaint. To ease the burden on taxpayers, the Government has designed a GST Common Portal and as a result no one needs to go to GST offices. 

As per Transitional Provisions of GST, every taxpayer is required to file GST TRAN-1 to claim input tax credit he has received under prior indirect taxes. The first step is to file a declaration ascertaining that he is eligible to claim input tax credit on the supplies made before implementation of GST Act and the tax credit received by him was post GST implementation, that is, after 1st July, 2017.

Additionally, the taxpayers also need to furnish some other details. In case of input tax credit on capital goods they need to provide information on the amount of credit they have availed under the previous indirect taxes till the appointed day. They are also required to submit the amount, yet to be claimed by them under each tax till that day.

In case of stock held by the taxpayer post implementation of GST, he needs to provide detailed information of the stock along with name of supplier, invoice date, quantity, serial number, value of goods, description, unit code and several other details required to claim input tax credit of previous taxes. 

Input tax credit or CENVAT credit can be carried forward to GST by filing GST TRAN-1 e-form on its Common Portal.

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