PAN No. and GST No., Income Tax

[SHEETAL SINGH]

Company has been struk off then PAN No. and GSTIN No. is active or inactive?

Also, how much time will the PAN/GST no. is inactive?

Is there any time limit provided by Govt. related to PAN./GST No. will be inactive in case of company is struk off?

Posts / Replies

[YAGAY andSUN]

When a company is struck off by the Registrar of Companies (RoC), several implications arise, especially concerning the PAN and GSTIN status. Here’s a breakdown of how these are affected:

1. PAN Status After Company is Struck Off:

• When a company is struck off, it means that the company has been dissolved and is removed from the register of companies.

• The PAN (Permanent Account Number) assigned to the company will not automatically become inactive when the company is struck off.

• PAN will remain active initially but, practically, it becomes non-operational because the company is no longer in existence or conducting business. However, it is important to note that the PAN is still technically valid until the tax authorities formally deactivate it, or the company is formally dissolved by the Income Tax Department.

Important Point: The company’s tax filings and returns (if any) will no longer be accepted once it is struck off, and it will not be able to file any new returns after being struck off unless it is revived.

2. GSTIN Status After Company is Struck Off:

• The GST Registration Number (GSTIN) will remain active unless the authorities decide to cancel or suspend the GSTIN due to the company being struck off.

• In practice, GSTIN becomes inactive or cancelled once the company is struck off or its status changes to non-operational in the records of the Goods and Services Tax Network (GSTN).

GST Cancellation:

• Under Section 29(2)(b) of the CGST Act, a GST registration can be cancelled if the company is no longer in operation (like in the case of being struck off).

• This cancellation can occur automatically or after the tax authorities conduct an inquiry. If the GSTIN is not voluntarily surrendered by the company, the authorities will initiate the cancellation.

GST Cancellation Timeline:

• There is no specific time limit set by the government regarding when the GSTIN will become inactive or cancelled after the company is struck off.

• GST cancellation can happen within a few months after the company is struck off, depending on whether the authorities have initiated the process.

• If a company has failed to file GST returns for a long period, the GST authorities may proactively initiate the cancellation process.

3. Time Limit for PAN/GSTIN to Become Inactive After Company is Struck Off:

• PAN: The government does not set a specific time limit for when a PAN will be deactivated. Technically, it remains valid, but the company cannot carry out any business or file tax returns.

• GSTIN: The GST registration can be cancelled by the tax authorities once they are aware of the company’s struck off status. This process might take a few months after the company is struck off, but there is no fixed time limit provided for cancellation.

4. What Happens if the Company is Revived:

• If the company is revived (restored to the active register), it can reapply for GST registration if needed and use the same PAN unless there were issues with the PAN.

• Reviving the company will allow the company to re-establish its operations, including tax filing and compliance activities.

Summary:

• PAN remains active after a company is struck off, but it becomes practically non-operational as the company cannot file returns or conduct business.

• GSTIN may remain active temporarily but will likely be cancelled once the authorities are aware of the company being struck off.

• There is no specific time limit provided by the government for the automatic deactivation of PAN or GSTIN after a company is struck off. The authorities may act based on their discretion or if they identify that the company is no longer operational.

• If the company is revived, both PAN and GSTIN can be reinstated, and the company can continue its operations.

If you're dealing with a struck-off company and need to address the status of its PAN or GSTIN, it's a good idea to check directly with the Income Tax Department and GST authorities for more specific steps or potential implications.

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