Whether GST registration to be retained for an owned premises where the business is inoperative?

[Balaji Srinivasamurthy]

Dear experts,

I humbly request you to share an insight where a company owns a property and unfortunately closed down its operations, whether they need to surrender the GST registration or retain the registration based on its ownership? Sale of property is uncertain and so is GST payable on disposal.

AI Summary

Company must cancel GST registration if business is discontinued; sale of immovable property is GST-exempt under CGST Act. A company that owns property but has ceased business operations is not required to retain GST registration solely based on property ownership. Under the CGST Act, registration must be canceled if the business is discontinued. Additionally, the sale of immovable property such as land or completed buildings is exempt from GST, so no GST is payable on such sales. Therefore, if there are no other taxable supplies, the company should complete all GST compliances and surrender its registration.