Reasons Why Your GSTIN Can Get Cancelled And How To Avoid Cancellation?

 There are several responsibilities that come with running a small business. Inventory management, dealing with vendors, invoicing and accounting, interacting with customers, sales and marketing, and a slew of other day-to-day tasks are all part of the job. Aside from that, there’s another major duty that takes a lot of time and effort: submitting monthly/quarterly GST returns. It is critical that you, as a taxpayer, keep up with all of the latest GST changes and file your GST returns on time and in accordance with the regulations, otherwise, your GSTIN may be terminated. It is always a good idea to take help of experts when you don’t understand a concept. If you want to know about GST in a better manner then you must get in touch with Easy GST team. We will guide you with the Best GST Accounting Software for SME so that you understand the accurate amount for which you must apply your taxes.

What are the reasons for getting your GST cancelled?

An authorised GST officer can terminate a taxpayer’s GST registration if the following conditions are met:

• 3B GSTR Non-filing: You are a composite taxpayer if you have not filed returns for three consecutive tax seasons or if you have not filed returns for more than six months in a row.
• ITC Claim That Isn’t Correct: Involves the input tax credit in contravention of the Act’s section 16 or the regulations
• Rule 86B violation: Using ITC from the computerised credit ledger to discharge more than 99 percent of the tax debt for selected taxpayers who violate Rule 86B – with total taxable value of supply exceeding Rs.50 lakh in the month, with some exclusions.
• Misreporting of Sales: While rare, there have been a few instances where the registered person was unaware of invoices issued in the absence of any supply of goods and/or services. This might occur when products are returned but the transaction is still recorded in the books; or when a registered person provides goods or services without issuing an invoice.
• Anti-profiteering Rules Violation: If a registered person violates anti-profiteering provisions, their GST registration might be revoked. This might happen if you don’t pass on the savings from lower GST rates to your consumers.
• Suppression of facts: Registration was obtained via deception, deliberate misrepresentation, or suppression of facts.
• GST Returns with Abnormal Values: Suspension is triggered if ‘Significant Anomalies’ are discovered between the reported values of outward supplies in GSTR3B and the declared values in GSTR1 ITC. GSTR 3B declared value vs. GSTR 2B accessible values

What is the reason of delayed GST?

Several due dates have been brought forward as a result of the epidemic, and COVID relief measures have been offered to small taxpayers. It happened in 2020, and the trend is repeating again in 2021.

Because it is difficult to handle everything on their own and there are fines for late files, most small firms prefer to outsource taxation to a Chartered Accountant. However, it generates a lot of reliance, and you often lose track of things as a result. GST Returns may be delayed or filed late as a result of this.

What does it mean to cancel your GST registration?

The taxpayer’s GST registration will be cancelled, which means he or she will no longer be a GST registered person. He won’t have to pay or collect GST, nor will he be able to claim input tax credits, therefore he won’t have to file GST reports.

Consequences of Cancelling Your GST Registration

The taxpayer will no longer be required to pay GST. GST registration is required for some companies. If the GST registration is cancelled but the business continues, it would be considered a GST violation with severe penalties.

GSTR 2A and 2B have been introduced. The status of suppliers’ return filings has a big impact on your ITC credit. You may use EasyGST GST Billing & Return Filing Software to see if a vendor is required to file returns monthly or quarterly.

GST for the migrated taxpayers

Every individual who was previously registered under indirect tax rules was required to migrate to GST. Many of these people may not have been required to register for GST. For example, in most states, the VAT threshold was Rs.5 lakhs, but the GST barrier is Rs.20 lakh*. However, they had to make sure you weren’t making interstate supply, as interstate suppliers, with the exception of service providers, are required to register.

*Rs.40 lakh if only products are supplied in some states, or Rs.10 lakh if only goods are supplied in certain special category states/Union Territories. A taxpayer in this situation was required to make an electronic application in the form GST REG-29 to the GST portal.

How can easy GST help you out?

GST returns are usually filed monthly, although they can also be filed quarterly. As a result, keeping track of things might be challenging at times. EasyGST, GST Return Software in India not only reminds you of all GST return filing deadlines, but it also keeps you up to speed on the latest GST news and developments. The timely alerts assist you in filing your taxes on time, avoiding costly fines.

In addition, EasyGST: Best GST Software for Business provides a consolidated picture of your own sales and purchases over a 6-month period. This easily available data provides you with a trend of your transactions over time, allowing you to make important business choices and gauge your success. IRIS Peridot delivers a wealth of information and reports based on the most recent GST returns submitted.

As a small company owner, you can simply monitor your return filing with less reliance on an outsourced third-party with such information at your fingertips. Not only that, but the software also aids in vendor management, ITC maximisation, and Nil Return Filing, among other things.

Get in touch with our team and we will guide you in the best manner so that you would not face any issues related to the returns.