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TMI BlogProcessing of Applications for Cancellation of Registration submitted in FORM GST REG-16X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the provisions of law across the field formations (i.e. jurisdictional officers), the Commissioner, in exercise of its powers conferred by section 168 (1) of the West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the WBGST Act ), hereby clarifies the issues as detailed hereunder: 2. Section 29 of the WBGST Act, read with rule 20 of the West Bengal Goods and Services Tax Rules, 2017 (hereinafter referred to as the WBGST Rules ) provides that a taxpayer can apply for cancellation of registration in FORM GST REG-16 in the following circumstances: a. Discontinuance of business or closure of business; b. Transfer of business on account of amalgamation, merger, de-merger, sale, lease or otherwise; c. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nery; e) In case of transfer, merger of business, etc., particulars of registration of the entity in which the existing unit has been merged, amalgamated, or transferred (including the copy of the order of the High Court / transfer deed); f) Details of the last return filed by the taxpayer along with the ARN of such return filed. On successful submission of the cancellation application, the same appears on the dashboard of the jurisdictional officer. 5. Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of commission/omission committed before or after the date of cancellation, the proper officer should accept all such applications within a period of 30 days from the date of filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved and the same on examination is found satisfactory, the Proper Officer may approve the application for cancellation and proceed to cancel the registration by issuing an order in FORM GST REG-19 . If reply to the query is found to be not satisfactory, the Proper Officer may reject the application for cancellation on the system, after giving the applicant an opportunity to be heard. The Proper Officer must also record his reasons for rejection of the application in the dialog box that opens when the Reject button is chosen. 7. Section 45 of the WBGST Act requires every registered person (other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cancellation of registration. This can also be done at the time of submission of final return in FORM GSTR-10 . In any case, once the taxpayer submits the application for cancellation of his/her registration from a specified date, he/she will not be able to utilize any remaining balances in his/her electronic credit/cash ledgers from the said date except for discharging liabilities under GST Act upto the date of filing of final return in FORM GSTR-10 . Therefore, the requirement to reverse the balance in the electronic credit ledger is automatically met. In case it is later determined that the output tax liability of the taxpayer, as determined under sub-section (5) of section 29 of the WBGST Act, was greater than the amount of input tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn FORM GSTR-8 ). It is clarified that issuance of notice would not be required for registered persons who have not made any taxable supplies during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration) and has furnished an undertaking to this effect. 11. It is pertinent to mention here that section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for Suspension of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Although the provisions of CGST (Amendment) Act, 2018 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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