Surrender GST registratio

[mathur ramachandran]

My client, duly registered under GST, is engaged in supply of services and had a Turnover of more than 20Lakhs in FY 19-20.. Now he expects his turnover to be less than 20 lacs in the current FY 20-21. From 1.4.20 to 31.8.20 he has raised bills on B2B customers and has collected GST and paid it to Govt. Can he now surrender his GST regn in Sep 20. If not,can he do it on 1.4.21.

Kindly clarify

Thanking you,Ca M S Ramachandran, Mobile:9447776812

[KASTURI SETHI]

Yes. The registration can be surrendered now at any time during a year if registered person's turnover is below than threshold limit and he expects/anticipates that his aggregate turnover will remain below threshold limit.. Pl. note the language of Section 22 of CGST Act. Registration is required to be taken, if his aggregate turnover in a financial year exceeds twenty lakhs rupees.

In the pre-GST era, the words were, "in the preceding financial year". The basis of registration was aggregate turnover in the previous year. This is the major change in GST regime regarding obtaining registration.

Moreover, it is pertinent to point out that prior 23.1.18 only person registered voluntarily could not apply for cancellation of registration before the expiry of one year from the effective date of registration. That proviso to Rule 20 of CGST Rules, 2017 has been omitted vide Notification No. 3/18-CT dated 23.1.18

See para no.2 (iii) of the above of notification.

" (iii) in Rule 20, the proviso shall be omitted;"

From the above, it can be inferred that the condition of not allowing cancellation of registration in the year at any time existed for only for voluntarily registered and not for other than voluntarily registered..

AI Summary

GST registration surrender: registration may be cancelled when aggregate turnover is expected to fall below the threshold this year.
A registered service supplier may surrender GST registration when they reasonably expect aggregate turnover for the financial year to remain below the statutory threshold; registration is now assessed on the current financial year rather than the preceding year. An earlier proviso that restricted cancellation by voluntarily registered persons within the first year has been omitted, allowing cancellation where conditions for registration are not met, while requiring compliance with obligations to account for tax on supplies made during registration.