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Cancellation of GST Registration of Composition Dealer

28 December 2019

A composition dealer registered under GST had applied for cancellation of GST registration because he is no longer to be liable to be registered as his turnover is below the limit. However, he received a SCN stating that returns up to the date of cancellation are not filed. So he tried filing the return however error came stating that you cannot file the return before the period is over. Hence, the officer rejected the application. This issue will always happen as there will be a time lag between application for cancellation and verification by the officer. And hence it will keep on repeating.

Does anyone have a solution for the above matter?

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6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 29 December 2019

As per Rule 23 , the application for revocation can be file only within 30 days from the date of service of order of Cancellation & revocation cannot be file if Registration is cancelled due to Non filing of Returns .
So you are required to file all your pending Return within 30 days from the date of cancellation order.

Hence if you are trying file your pending Return after the prescribed time you won't be allowed. It's better Contact to your jurisdiction Tax Officer , probably he may revoke your registration.

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 29 December 2019

Dear Pankaj, you miss understood the above query.
Dear yash,
It would be safe to file the returns until the cancellation order is passed to safeguard ourselves from the late fees, in case the cancellation application isn’t approved by the authorities. However, generally if you do not have any liability, they would cancel the GSTIN.

Yash Morakhia (107 Points)
Replied 30 December 2019

My query is like if I apply for cancellation today on 30/12/2019, I wont be able to file return for Q3 because return period will end on 31st Dec and after that only I will be able to file the CMP-08 return. This kind of thing will always happen irrespective of the date I apply for cancellation because the client will keep on continuing his business as he is below the required turnover limit for registration. And everytime I will receive a SCN from officer. Even the helpdesk & grievance department is not helpful. They say to meet the officer, but he is 4 hours far from the place. So how to resolve the issue? Last time when I received a SCN, I told the officer the issue but without any reason he rejected my cancellation application. So if anyone can provide me a possible solution I will be very helpful. One possible solution I am thinking is that i will file the CMP-08 on 1st Jan and file for Cancellation also on the same date and then see whether the officer cancels the same or not.

Harshal Deshpande (Chartered Financial Analyst ) (87 Points)
Replied 13 January 2020

Cancellation of GST registration obtained in India is possible. It can be cancelled by the registered person or by an Officer or by the legal heirs of the registered person, in case of death of the person.

If you opt to cancel your registration, you need to apply for it on the GST Common Portal. You must do this within 30 days of the event which made you cancel your registration. You will need data of stock held on the date and the quantum of dues of payments and credit reversal, and the particulars of payments made.

After you apply for cancellation, the Proper Officer will review your application. Once he is satisfied with it, he will cancel the registration within 30 days from the date of application or the date of reply to notice.