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Should I cancel my GST registration?

25 July 2024

I have 2 different business having each 30 and 35 lac revenue annually , both work at separate shops

But I had one GST since long and didn't changed that to 2 seperate because previously GST exemption was 20 lac so no meaning to separate

But now if I take GST for both separately than it come below exemption limit .

So should I cancel this GST number for existing business and both comes under exemption.

So what should I do?

Please guide

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5 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5309 Points)
Replied 25 July 2024

To cancel one of the two GST registrations, follow these steps: 1. *Determine the registration to be cancelled*: Identify the GST registration that is no longer required or is dormant. 2. *File Form GST REG-16*: Submit Form GST REG-16 on the GST portal to apply for cancellation of the registration. 3. *Reason for cancellation*: Provide a valid reason for cancellation, such as: - Closure of business - Transfer of business - Change in constitution - No business activity 4. *Upload required documents*: Attach supporting documents, if any, such as: - Closure certificate - Transfer deed - Change in constitution documents 5. *Verification*: Verify the application through: - Digital signature - EVC (Electronic Verification Code) - OTP (One-Time Password) 6. *Acknowledgement*: Receive an acknowledgement reference number. 7. *Processing*: The tax officer will process the application and may request additional information or clarification. 8. *Order for cancellation*: If approved, an order for cancellation will be issued, and the registration will be cancelled. 9. *Update records*: Update your records and notify stakeholders, if necessary. Please consult a tax expert or chartered accountant to ensure a smooth cancellation process and compliance with GST regulations.

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Kumar Thakkar (44 Points)
Replied 25 July 2024

Thanks but my question is different sir.

I have only 1 GST for my 2 buisness and want to cancel it

Money Money (413 Points)
Replied 27 July 2024

Let’s address your situation regarding the GST registration for your two separate businesses. Here are the steps you can consider:

Current Scenario:
You currently have a single GST registration for both businesses.
The combined annual revenue from both businesses is below the exemption limit.
Options:
You have a few options:
Continue with Single GST Registration:
You can keep the existing GST registration and continue operating both businesses under the same GSTIN.
This approach maintains simplicity and avoids the need for separate registrations.
Separate GST Registrations:
You can apply for separate GST registrations for each business.
This would involve obtaining a new GSTIN for each business.
Each business would then have its own compliance requirements and separate records.
Note that separate registrations may be beneficial if you plan to expand or if the businesses have different compliance needs.
Considerations:
Here are some factors to consider:
Compliance Ease:
A single GST registration is administratively simpler, especially if the businesses are closely related.
Separate registrations mean maintaining distinct records and filing separate returns.
Business Independence:
If the businesses operate independently (different locations, different products/services), separate registrations might be more appropriate.
Future Growth:
Consider whether you anticipate significant growth in either business.
Separate registrations allow flexibility for expansion.
Cancellation of Existing GSTIN:
If you decide to go with separate registrations, you can cancel the existing GSTIN for both businesses.
Ensure that you comply with the cancellation process and update your records accordingly.

VENU K (6 Points)
Replied 27 July 2024

Registration requirements in GST is as per AGGREGATE TURNOVER. If your aggregate turnover exceeds the threshold limit you become liable for registration.The aggregate turnover is defined in GST as below.

As per GST law, “aggregate turnover” refers to the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on Reverse Charge Mechanism (RCM) basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number (PAN) computed on an all-India basis.

So if you have different shops under proprietorship you have to calculate your entire turnover for the purpose of registration.Aggregate turnover is to be calculated PAN wise on an all India basis.