A sole proprietor has taken GST Registration in the month of January'19 as he was told that GST registartion is must, whereas actually it's not, and his turnover is not expected to cross the threshold limit also. So, now he wants to cancel the registration.
a) Is it possible to cancel the same before expiry of 1 year as he has obtained voluntary registration?
Continuing the situation- he has purchased one computer and other accessories and book the input gst in his electronic credit ledger. Still now his output supply is nil, so, that ITC has not been availed till now.
b) Now, if the registration cancellation is possible, then what will be the effect on this ITC which has not been availed? Does he need to pay in cash?
c) If the cancellation is not possible for 1 year, then if he doesn't use such ITC against output supply, then whether after 1 year at the time of cancellation does he require to pay that unutilised/unavailed ITC in cash?
CAclubindia
