08 March 2021
A gst registered dealer services provided nature of business present.if a dealer nature of business change from services mode to business mode(goods) transfer. Question: 1.Dealer how to change procedure services to goods selling transfer 2. Dealer closing old registration and fresh registration applied.
07 July 2024
If a GST registered dealer wishes to change their nature of business from providing services to selling goods, they would need to follow specific procedures as per GST regulations in India:
### Changing Nature of Business from Services to Goods
1. **Amendment of GST Registration**: - **Update GST Registration**: The dealer must update their GST registration details to reflect the change in the nature of business from services to goods. - Log in to the GST portal using your credentials. - Navigate to the "Amendment of Registration" section. - Select the appropriate option to amend the registration details related to the change in business activity. - Update the primary business activity code to reflect the new nature of business (selling goods). - Make necessary changes to the GST registration certificate online.
2. **Input Tax Credit (ITC) Reconciliation**: - **Adjustment of ITC**: Ensure all input tax credits (ITC) related to services provided are reconciled and adjusted appropriately before the transition. - Any unutilized ITC on services may need to be reversed or adjusted based on transition rules.
### Procedure for Closing Old Registration and Applying for Fresh Registration
If the dealer decides to close the existing GST registration due to the change in nature of business and apply for a fresh registration, they would typically follow these steps:
1. **Closing the Existing Registration**: - **Apply for Cancellation**: Log in to the GST portal and apply for cancellation of the existing GST registration. - Navigate to the "Application for Cancellation of Registration" section. - Fill out the application form with required details. - Submit the application along with supporting documents. - Await approval from the GST authorities.
2. **Applying for Fresh Registration**: - **New Registration Application**: After the existing registration is cancelled, apply for a fresh GST registration under the new nature of business (selling goods). - Log in to the GST portal. - Navigate to the "New Registration" section. - Fill out the registration application form with updated business details, including the new nature of business (goods). - Submit the application along with required documents, such as proof of business address, identity and address proof of promoters, bank account details, etc. - Upon successful verification and approval by the GST authorities, the new GST registration will be issued.
### Important Considerations: - **Transition of ITC**: Ensure all ITC related to services is appropriately accounted for and reconciled before the change in nature of business. - **Compliance**: Adhere to all GST compliance requirements during the transition period, including filing of returns, payment of taxes, and maintaining proper records. - **Legal and Tax Advice**: It is advisable to seek guidance from a tax consultant or legal expert to ensure compliance with GST laws and regulations specific to your business circumstances.
By following these procedures, the dealer can effectively transition from providing services to selling goods under GST regulations in India.
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