18 September 2020
A gst registered regular scheme dealer cancel of gst registered.closing stock value rs 5 lacs. Question: 1.closing stock treated in gst act. 2.cancel of gst registered after filling for gst returns.dealer turnover yearly below Rs:1 crore.
06 July 2024
Certainly! Here are the answers to your questions regarding a GST registered dealer cancelling their registration, especially when their turnover is below Rs. 1 crore annually:
1. **Treatment of Closing Stock under GST Act**: - When a GST registered dealer cancels their registration, they are required to account for the closing stock of goods held on the date of cancellation. - The dealer needs to pay GST on the closing stock held as per the applicable rates (depending on the type of goods) before cancellation. - This GST liability on closing stock is computed based on the purchase price or as per the market value, whichever is higher. - The dealer must file the FORM GST ITC-03 within 30 days of the date of cancellation, declaring the details of the closing stock and paying the applicable GST.
2. **Cancellation of GST Registration after Filing GST Returns**: - If the GST registered dealer's turnover is below Rs. 1 crore annually and they wish to cancel their registration, they can do so voluntarily. - After filing all the required GST returns for the period up to the date of cancellation, they can apply for cancellation of GST registration through the GST portal. - The dealer must clear any outstanding tax liabilities and submit all pending returns before applying for cancellation. - Once the cancellation application is approved, the dealer needs to follow the procedure mentioned earlier regarding the treatment of closing stock and payment of GST.
It's important for the dealer to ensure compliance with all GST rules and regulations regarding cancellation of registration and treatment of closing stock to avoid any penalties or legal issues. If there are specific circumstances or additional details about the dealer's situation, consulting with a GST practitioner or expert would be advisable for precise guidance tailored to their case.
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