Surrender of GST Registration

[Shailesh Bapat]

Sir,

Company has obtained two registration within the same state - for two products manufactured by them. Company now wants to merge both registrations and operate with a single gst within the State. Both the GSTIN have pending SCN's. What is the way out for this?

[KASTURI SETHI]

You can surrender one registration certificate but the department will cancel only after all Govt. dues are cleared and ALL the returns are filed. There is no timeline for the department to cancel registration.

[Shilpi Jain]

I do not think there is any provision in the law which requires the registration to be active merely because there are SCNs pending.

You could cancel one registration and add all the premises of the cancelled registration in the registration that you are continuing as additional place of business.

[KASTURI SETHI]

My reply is based on conversation with the Officer of Common Portal System. Once application for cancellation is filed, any return is not to be filed except Final Return.(in my view, Annual Return is also to be filed, if not waived by Govt.). See Circular no.69/43/2018-GST dated 26.10.18 and para no.7 of Circular No.88/07/2019-GST dated 1.2.19.

Also see Rules 20 & 22 read with Rule 21A(1) amended w.e.f. 1.2.19 word for word. Also peruse proviso to Section 29(1) of CGST Act w.e.f. 1.2.19.

Govt. may not cancel registration until and unless all decks are cleared by the assessee to the satisfaction of the department.

AI Summary

Surrender of GST registration: cancellation allowed but contingent on clearance of dues and required return filings.
A registrant may surrender one GST registration and add its premises as an additional place of business on the continuing registration; cancellation is subject to clearance of all government dues and filing of required returns, with only the final return generally required upon filing for cancellation and no guaranteed timeline for departmental cancellation.