If a person registered in gst comp...and the turnover is below 40 lakhs.Can he cancel the registration and if he does did he needs to pay tax on left stock...and if he needs to pay then will it be composition rate or other. Can he carry on the same business after cancellation of gstin?

Reply— 

1) As per notification no. 10/2019 dated 07.03.2019, if a person exclusively engaged in supply of goods and whose turnover does not exceed rs. 40 lakhs in a financial year is not required to get registered under GST, thus a registered person falls in above category can apply for cancellation of registration.

2) As per Section 29(5) of CGST Act, every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or 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, calculated in such manner as may be prescribed.

As per above provision, composition dealer is required to pay GST on closing stock at the time of cancellation of GST registartion.