GST – States – 07/2018-19 – Dated:- 29-10-2018 – Government of Karnataka (Department of Commercial Taxes) No. KSA/GST/CR-108/2017-18 Office of the Commissioner of Commercial Taxes Vanijya Terige Karyalaya, Gandhinagar, Bengaluru-560009, Dated: 29-10-2018 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. (GST) 07/2018-19 This office is in receipt of representations seeking clarifications on various issues in relation to processing of the applications for cancellation of registration filed by taxpayers in FORM GST REG-16. In order to ensure uniformity in the implementation of the provisions of law across the field formations, in exercise of the powers conferred by section 168 (1) of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Act ), the issues are hereby clarified as detailed hereunder: 2. Section 29 of the KGS T Act, read with rule 20 of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Rules ) provides that a taxpay
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cases, the 30-day deadline may be liberally interpreted and the taxpayers' application for cancellation of registration may not be rejected because of the possible violation of the deadline. 4. While initiating the application for cancellation of registration in FORM GST REG16, the Common portal captures the following information which has to be mandatorily filled in by the applicant: a) Address for future correspondence with mobile number and email address; b) Reason for cancellation; c) Date from which cancellation is sought; d) Details of the value and the input tax/tax payable on the stock of inputs, inputs contained in semi-finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery; 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
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stration should be immediately accepted by the proper officer and the order for cancellation should be issued in FORM GST REG-19 with the effective date of cancellation being the same as the date from which the applicant has sought cancellation in FORM GST REG-16. In any case the effective date cannot be a date earlier to the date of application for the same. 6. In situations referred to in (a) or (b) in para 5 above, the proper officer shall inform the applicant in writing about the nature of the discrepancy and give a time period of seven working days to the taxpayer, from the date of receipt of the said letter, to reply. If no reply is received within the specified period of seven working days, the proper officer may reject the application on the system, after giving the applicant an opportunity to be heard, recording reasons for rejection in the dialog box that opens once the 'Reject' button is chosen. If reply to the query is received and the same on examination is found s
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liability that he/she may have incurred under sub-section (5) of the section 29 of the KGS T Act. It may be noted that the last date for furnishing of FORM GSTR-10 by those taxpayers whose registration has been cancelled on or before 30.09.2018 has been extended till 31.12.2018 vide notification (23/2018) No. FD 47 CSL 2017 dated the 26th October, 2018. 8. Further, sub-section (5) of section 29 of the KGST Act, read with rule 20 of the KGST Rules states that the taxpayer seeking cancellation of registration shall have to pay, by way of debiting either the electronic credit or cash ledger, the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or the output tax payable on such goods, whichever is higher. For the purpose of this calculation, the stock of inputs, semi-finished goods, finished goods and capital goods shall be taken as on the day immediately preceding the date with effect from which the cancellation has been ordered by the prop
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nce shall be paid by him/her in cash. It is reiterated that, as stated in sub-section (3) of section 29 of the KGST Act, the cancellation of registration does not, in any way, affect the liability of the taxpayer to pay any dues under the GST law, irrespective of whether such dues have been determined before or after the date of cancellation. 9. In case the final return in FORM GSTR-10 is not filed within the stipulated date, then notice in FORM GSTR-3A has to be issued to the taxpayer. If the taxpayer still fails to file the final return within 15 days of the receipt of notice in FORM GSTR-3A, then an assessment order in FORM GST ASMT-13 under section 62 of the KGST Act read with rule 100 of the KGST Rules shall have to be issued to determine the liability of the taxpayer under sub-section (5) of section 29 on the basis of information available with the proper officer. If the taxpayer files the final return within 30 days of the date of service of the order in FORM GST ASMT-13, then t
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