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GST no surrender under Composition Scheme

Yogi ( ) (93 Points)

31 March 2019

what procees to be followed of i want surrender mu gst registration under composition due to turnover is less than 40 lakhs...

and whether any tax amount to be paid on stock in hand...

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11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177771 Points)
Replied 31 March 2019

You cannot surrender your GST registration if your aggregate turnover has exceeded 20 /10 lakhs,

1 Like

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pritesh (CA Final student) (7101 Points)
Replied 31 March 2019

Yes you can surrender by filing application of cancellation. but from 1st april 2019.

It is Logical to sae that composition Dealer has not claimed itc on stock then why you will REQUIRED to reverse it.

Pankaj Siddhu (other) (299 Points)
Replied 31 March 2019

Are you closing the business?

Is your business turnover is below 20 lakhs?

2 Like

Yogi ( ) (93 Points)
Replied 31 March 2019

turnover is below 40 lakhs .... business is not closed

RUPINI KOTHAMASU (CA-JOB) (502 Points)
Replied 31 March 2019

As per section 29(1)(c), in case you are not a person registered under section 25 subsection 3 and now you are no longer liable to be registered under section 22 or section 24 then you can cancel the registration.

so I think you can cancel your registration.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 31 March 2019

As per Rule 20 of CGST Act , : Yes , you can surrender your Registration , you have file GST Reg 16 online on Portal .
Therein it will ask you for the closing stock details have to deposit the tax on same .

Yes I agree with Mr Pritesh , logically composition dealer need not reguired to pay tax on stock , But it will be not allow you cancel your registration unless the tax is deposited on stock declared

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177771 Points)
Replied 31 March 2019

I do agree about 40 lakhs limit (for pure goods supply only), but would like to warn to check for no taxable service supply along with it. If any single taxable supply of any services along with the goods, the exemption limit remains 20 lakhs!!

3 Like

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 31 March 2019

Yes correct Mr. Dhirajlal Ji, the limit of 40lac is only for Goods Only

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177771 Points)
Replied 01 April 2019

Yes, that is the practical difficulty faced by most of the dealers, who have crossed 20 lakhs aggregate turnover, should deal only in goods; but should not have single taxable 'Service' supply.

As wrongly opting 40 lakhs limit would trap you in more difficult situation in future...