The Independence of the Two Regimes
The MCA and the GST system operate independently. A company that is struck off under Section 248 of the Companies Act is removed from the register of companies, but its GST registration does not automatically cancel. The GST portal continues to treat the registration as active, and the monthly or quarterly return filing obligations continue until cancellation. Late filing fees accumulate at ₹50 per day per return (₹20 for nil returns), and penalties can reach ₹50,000 to ₹2,00,000 within a year of non-filing.
The Cancellation Sequence
The company must file Form GST REG-16 to apply for cancellation. Before filing REG-16, all pending GSTR-3B and GSTR-1 returns must be filed, and the portal will not allow cancellation if returns are pending. The REG-16 requires the date of closure (which must match the MCA records), HSN-wise closing stock details, the ITC reversal amount, and the tax payable on closing stock. The proper officer reviews the application and issues Form GST REG-19 (cancellation order) if satisfied.
The GSTR-10 Final Return
GSTR-10 must be filed within three months of the date of the cancellation order or the date of the cancellation application, whichever is later. The return must include the closing stock details, the ITC reversed, the tax paid, and any refund claim. Late filing of GSTR-10 attracts ₹200 per day, capped at ₹10,000. Even in cases of suo motu cancellation by the GST officer (for example, where the company is struck off by the ROC), the company must still file GSTR-10.
The ITC Reversal
On cancellation, ITC on closing stock and capital goods must be reversed. For inputs and finished goods, the reversal is the lower of the ITC claimed or the GST on the market value. For capital goods, the reversal is computed on the written-down value. The reversal is the most complex part of the closure, and an incorrect computation is a common source of post-cancellation notices.
The Practical Coordination
The company should sequence the closure: ROC strike-off or winding-up → GST cancellation (REG-16) → GSTR-10 → ITC reversal reconciliation. A company that completes the ROC strike-off but leaves the GSTIN active faces continuing return obligations, late fees, and potential recovery proceedings against the directors personally.
Call to Action: For GSTR-10 filing, REG-16 cancellation, or ITC reversal computation, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.