Migrated to GST with less than 20 Lakh turnover

[Ranjit Abraham]

I have a sole proprietorship firm registered under Central Board of Excise and Customs i.e, service tax registration.

My nature of business is Website Designing. I have a turnover of Rs. Five lakhs p.a.

Recently its migrated to GST portal and GST registration number was generated.

Earlier I dint charge any tax on invoice because it was exempted (below 10 lakhs).

Q.1: Now under GST do I have to charge tax?

Q.2: If yes, can I cancel my GST and continue with old billing?

Q.3: I dont see any option to cancel GST from portal. How to do that?

Q.4: After cancellation of GST, can I provide service under old registration and continue my business as before?

[KASTURI SETHI]

If your supply of service is inter State, you are not eligible for threshold exemption. Rate of GST for service is 18%. You may say CGST 9 % +SGST 9% or IGST 18% (Inter State).

You can take ITC of tax paid. You will not lose anything.

If you retain GST registration, you will be able to supply service to big companies.

You cannot provide service under old registration as your old registration stands migrated.

Otherwise cancellation is no problem but it will take time and you cannot sit idle. Better option is not to get cancelled and carry on business with new registration and new invoice pattern.

[Ranjit Abraham]

Thank you Sir for the prompt reply. It was very helpful.

Meanwhile I have called GST Helpdesk: 0120-4888999

They told me there is no provision for cancellation now. There are no notifications from government towards cancellation. I can only preview the cancellation form i.e, GST REG - 16 but cannot submit it.

Most of my business is inside state Karnataka. So I will continue charging additional GST tax as per above from my clients.

[KASTURI SETHI]

Still Department's site is not perfect, otherwise there should be no problem in cancellation. Or we may say the department itself does not want to cancel registration in intial stages.

[DR.MARIAPPAN GOVINDARAJAN]

If you are within the threshold limit you need not charge tax. Cancellation may be done at the time of availability in the portal. If you want to charge tax, even if you are within the threshold limit, you may register voluntarily.

AI Summary

Threshold exemption under GST determines charging obligations; voluntary registration permits charging tax despite exemption, and cancellation is unavailable on portal. Whether a migrated GST registration requires charging tax depends on the threshold exemption and whether supplies are intra state or inter state; inter state supplies are not eligible for the threshold exemption and must be taxed. Voluntary registration allows charging GST and claiming input tax credit. A migrated registration replaces prior registration for billing, and portal limitations may delay cancellation, so suppliers should follow GST invoice and compliance obligations while cancellation procedures remain unavailable.