Merger of UT of DD & UT of DNH - effect on Registration of existing Tax Payers under GST

[Vinay Kunte]

Dear Experts

The Tax payer who is registered presently under the UT of daman and Diu will no be a Tax Payer in the UT of Daman & Diu and Dadra & Nagar Haveli. Will the Tax Payer have to seek a fresh Registration under this New UT and apply for cancellation for the exiting Registration? or will his registration would also be transferred automatically to the new UT?

[Rajagopalan Ranganathan]

Sir,

As per para 2 (iii) of Notification No.10/2020 – Central Tax dated 21st March, 2020 " who have registered Goods and Services Tax Identification Number (GSTIN) in the erstwhile Union territory of Daman and Diu and the erstwhile Union territory of Dadra and Nagar Haveli till the 25th day of January, 2019 have an option to transfer the balance of input tax credit (ITC) after the filing of the return for January, 2020, from the registered Goods and Services Tax Identification Number (GSTIN) in the erstwhile Union territory of Daman and Diu to the registered GSTIN in the new Union territory of Daman and Diu and Dadra and Nagar Haveli by following the procedure as below:-"

This clearly indicates that you have to take a new registration in the merged union territories by cancelling/surrending the old registration. You can transfer the ITC under old GSTIN to the new GSTIN as per the procedure prescribed in the above mentioned Notification.

[Gaurav Verma]

Dear Sir

In above case. If the entity has fail to transfer Itc from erstwhile Gstin within the time frame provided in the notification then in such case how can the entity utilise itc in new Gstin.

AI Summary

GST registration transfer required after union territory merger; taxpayers must obtain new registration and follow prescribed ITC transfer procedure.
Taxpayers registered in the erstwhile Union territories must obtain new GST registration in the merged territory and cancel the old registration; Notification No.10/2020 para 2(iii) allows transfer of the balance of Input Tax Credit from the old GSTIN to the new GSTIN after filing the January 2020 return by following the prescribed procedure.