Q. I own a computer shop and migrated from VAT to GST registration. I purchase products from a local distributor and sell them in my local shop. Because my business is losing money I want to close it and cancel my registration. My question is: Can I cancel my registration? If yes, then what I will do with my input tax credit which I have in my credit ledger account? I have more than Rs 50,000 in my credit ledger account.
You can apply for cancellation of registration under Section 29(1) of the CGST
Act, 2017 read with Rule 24(4) of CGST
Rules, 2017. As per Section 29(5) of the CGST
Act 2017, every registered taxable person whose registration is cancelled shall pay an amount, by way of debit in the electronic cash ledger, equivalent to the credit of input tax
in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, or capital goods or plant and machinery, on the day immediately preceding the date of such cancellation or the output tax
payable on such goods, whichever is higher. You may also refer to the provision to that sub-Section.
Q. I am a consultant associated with a merchant exporter, who procures goods from the local market by paying 0.1 per cent GST and exports them under LUT. He furnishes a PO and shipping bill to the original seller of the goods in India. I bill the merchant exporter my advisory fee for the business as consultancy fees/commission. Can I also bill him with 0.1 per cent GST? If yes, what documents do I need and what is the process?
Q. We are a registered dealer under GST in West Bengal. A fire broke out in the go-down of the transporter and goods were destroyed. Hence, goods couldn't be despatched. Further, we had prepared the tax invoice and paid the output tax. Our queries are: (1) Can we claim refund of output tax which has already been paid? (2) Does ITC, claimed against the said sale, have to be reversed? Kindly give your suggestion, with section/rules under the GST Act.
A practical way is to issue a credit note in accordance with Section 34 of the CGST
Act, 2017 read with Rule 53 of the CGST
Rules, 2017, and seek reduction of output tax
liability in accordance with Section 43 of the CGST
Act, 2017 read with Rule 73 of the CGST
Rules, 2017. In accordance with Section 17(5) (h) of the CGST
Act, 2017, input tax
credit shall not be available in respect of goods destroyed.