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Cancellation of registeation

manmohan baheti (student) (112 Points)

26 July 2020

are we reqiured to pay gst on closing stock on cancellation of registration, and we do not have any input left on portal,are we required to pay gst in cash before cancellation

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5 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 July 2020

Yes, You are required to pay GST on closing stock as well as capital goods for which credit is taken at time of purchase.
If there is no input tax credit left in your ITC ledger that you have to pay tax in cash before cancellation.

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annu Goyal (1102 Points)
Replied 26 July 2020

Yes, on cancellation of registration whichever assets you have is considered as deemed supply
because on these assets you have taken ITC earlier and on those ITC is not taken then it will not consider as supply
As on cancellation, closing stock will consider as deemed supply and have to pay tax

Vijayprakash P (1313 Points)
Replied 26 July 2020

Yes. you are required to pay GST on closing stock before cancellation of registration.

manmohan baheti (student) (112 Points)
Replied 27 July 2020

If the closing stock contains both ,purchased from urd party and purchased from registered party,are we reqiured to pay gst on whole closing stock,remember we have not taken any itc for urd purchase

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 July 2020

You have required to pay GST on closing stock which you was purchased from registered person and ITC is already taken in GSTR 3B.
You are not required to pay GST on purchase from URD party.