Gst migration from service tax
This query is : Resolved
11 August 2017
Dear sir,
Currently I hold service tax number . My turnover is below 20 lakhs and hence not required for GST migration. Do I need to cancel my existing service tax number or will the same get cancelled by not migrating to GST.
Please advice.
Currently I hold service tax number . My turnover is below 20 lakhs and hence not required for GST migration. Do I need to cancel my existing service tax number or will the same get cancelled by not migrating to GST.
Please advice.
11 August 2017
Please Check after logging in your aces account. I think you have been already migrated by the Deptt. and a Provision Reg. No. is issued to you.
If Provisional ID is not issued to you, then you need not to register to GST if your turnover is below 20 Lacs , and if Provisional ID is issued to you in that case you can apply for Cancellation of Registration.
If Provisional ID is not issued to you, then you need not to register to GST if your turnover is below 20 Lacs , and if Provisional ID is issued to you in that case you can apply for Cancellation of Registration.
11 August 2017
Provisional ID is issued. So service tax cancellation (after filing service tax returns) is required?
27 July 2024
If you hold a Service Tax registration and your turnover is below the threshold limit for GST (currently ₹20 lakhs for most states), you are not required to migrate to GST. However, managing your Service Tax registration is crucial for compliance and to avoid complications. Here’s a step-by-step guide:
### **1. **Understanding GST Migration and Service Tax Cancellation:**
1. **Service Tax Migration:**
- **Threshold Exemption:** If your turnover is below ₹20 lakhs (₹10 lakhs for special category states), you are not mandatorily required to migrate to GST.
- **Provisional ID:** If you have received a Provisional ID for GST migration but are not required to migrate due to your turnover, you do not need to complete the migration process.
2. **Service Tax Cancellation:**
- **Existing Service Tax Registration:** If you do not migrate to GST and your turnover remains below the threshold, you should address the status of your Service Tax registration.
### **2. **Steps to Take:**
#### **a. **Assess the Need for Service Tax Cancellation:**
1. **Non-Operational Status:** If you are not required to migrate to GST and your turnover remains below the threshold, you may not need the Service Tax registration.
2. **Compliance:** To avoid unnecessary compliance obligations and potential issues, it's good practice to cancel your Service Tax registration if you do not intend to use it and do not need to migrate to GST.
#### **b. **Process for Cancelling Service Tax Registration:**
1. **Filing Service Tax Returns:**
- Ensure all pending Service Tax returns are filed up to date.
- Clear any outstanding liabilities or dues.
2. **Applying for Cancellation:**
- **Online Portal:** Log in to the CBEC-GST portal or the Service Tax e-filing portal and apply for the cancellation of your Service Tax registration.
- **Application Form:** Submit a cancellation application, typically using Form ST-2 (if applicable) or through the portal's cancellation option.
3. **Confirmation:**
- Once your application is processed, you will receive a confirmation of the cancellation of your Service Tax registration.
#### **c. **Action If You Do Not Migrate:**
1. **Automatic Cancellation:** The Service Tax department does not automatically cancel Service Tax registrations if you do not migrate to GST. You will need to cancel it manually if you decide not to migrate and your turnover remains below the threshold.
2. **Follow-Up:** Regularly check for any communications from the Service Tax department and follow up as needed to ensure that your registration is properly cancelled.
### **3. **Consultation with Tax Professional:**
1. **Expert Advice:** Consult with a tax professional or GST consultant to ensure that all steps are correctly followed and to handle any specific issues related to your situation.
2. **Record Keeping:** Maintain proper records of all communications and submissions related to the cancellation process.
### **Summary:**
- **Service Tax Migration:** If your turnover is below ₹20 lakhs, you are not required to migrate to GST.
- **Service Tax Cancellation:** You should manually apply for cancellation of your Service Tax registration if you are not migrating and your turnover remains below the threshold.
- **Consult Professional:** Seek guidance from a tax professional for specific advice and to ensure proper compliance.
By following these steps, you can ensure that your Service Tax registration is properly managed and avoid any unnecessary compliance burdens.
### **1. **Understanding GST Migration and Service Tax Cancellation:**
1. **Service Tax Migration:**
- **Threshold Exemption:** If your turnover is below ₹20 lakhs (₹10 lakhs for special category states), you are not mandatorily required to migrate to GST.
- **Provisional ID:** If you have received a Provisional ID for GST migration but are not required to migrate due to your turnover, you do not need to complete the migration process.
2. **Service Tax Cancellation:**
- **Existing Service Tax Registration:** If you do not migrate to GST and your turnover remains below the threshold, you should address the status of your Service Tax registration.
### **2. **Steps to Take:**
#### **a. **Assess the Need for Service Tax Cancellation:**
1. **Non-Operational Status:** If you are not required to migrate to GST and your turnover remains below the threshold, you may not need the Service Tax registration.
2. **Compliance:** To avoid unnecessary compliance obligations and potential issues, it's good practice to cancel your Service Tax registration if you do not intend to use it and do not need to migrate to GST.
#### **b. **Process for Cancelling Service Tax Registration:**
1. **Filing Service Tax Returns:**
- Ensure all pending Service Tax returns are filed up to date.
- Clear any outstanding liabilities or dues.
2. **Applying for Cancellation:**
- **Online Portal:** Log in to the CBEC-GST portal or the Service Tax e-filing portal and apply for the cancellation of your Service Tax registration.
- **Application Form:** Submit a cancellation application, typically using Form ST-2 (if applicable) or through the portal's cancellation option.
3. **Confirmation:**
- Once your application is processed, you will receive a confirmation of the cancellation of your Service Tax registration.
#### **c. **Action If You Do Not Migrate:**
1. **Automatic Cancellation:** The Service Tax department does not automatically cancel Service Tax registrations if you do not migrate to GST. You will need to cancel it manually if you decide not to migrate and your turnover remains below the threshold.
2. **Follow-Up:** Regularly check for any communications from the Service Tax department and follow up as needed to ensure that your registration is properly cancelled.
### **3. **Consultation with Tax Professional:**
1. **Expert Advice:** Consult with a tax professional or GST consultant to ensure that all steps are correctly followed and to handle any specific issues related to your situation.
2. **Record Keeping:** Maintain proper records of all communications and submissions related to the cancellation process.
### **Summary:**
- **Service Tax Migration:** If your turnover is below ₹20 lakhs, you are not required to migrate to GST.
- **Service Tax Cancellation:** You should manually apply for cancellation of your Service Tax registration if you are not migrating and your turnover remains below the threshold.
- **Consult Professional:** Seek guidance from a tax professional for specific advice and to ensure proper compliance.
By following these steps, you can ensure that your Service Tax registration is properly managed and avoid any unnecessary compliance burdens.
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