GST Registration Cancelled in 2021

• As no transactions were done, all returns would have been filed “Nil”.
• The GST department, on its own, cancelled the GST registration in September 2021.

Still Penalty of Rs. 110000 Will be Charged

• GSTR-3B is a return that is required to be filed every month, even if no transactions are made.
• A late fee will be automatically calculated if the taxpayer does not file GSTR-3B within the time period of 10 months.

Late Fee Applicable If GSTR-3B Return Not Submitted On Time

• Normal Return: Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST).
• Nil Return: Rs. 20 per day (Rs. 10 CGST + Rs. 10 SGST).
• Maximum: Rs. 10,000 per return (Rs. 5,000 CGST + Rs. 5,000 SGST).

System Computed For Filing Returns from Nov 2020

• Rs. 10,000 late fee per month
• Rs. 10,000 × 10 months = Rs. 1,00,000

Late Fee Applicable If Unable to Submit GSTR-10

If your GST registration is cancelled or surrendered, you must file a final return called GSTR-10.

You need to file this return within the time period of 90 days from the later of these two dates: The date your GST was cancelled or the date you received the cancellation order.

• Late fee: Rs. 200 per day (CGST Rs. 100 + SGST Rs. 100)
• Maximum penalty: Rs. 10,000

Total Late Fee:

• GSTR-3B not filed (10 months): 10,000/month × 10 = Rs. 1,00,000
• GSTR-10 not filed in 90 days: Rs. 200/day capped at Rs. 10,000

Key Points to Keep in Mind

• Always file GSTR-3B monthly, even with no business. Means NIL returns on time.
• If the business is inactive, cancel the GSTIN voluntarily – don’t wait for the GST department to cancel it. Cancel it from your side.
• After cancellation, file GSTR-10 within 90 days to avoid a penalty of Rs. 200 per day.