QUESTION

Sir/Madam, Service provider providing taxable services and exempted services in the year 2017-18 and pay the tax on taxable services. Last taxable services was provided in the month of Jan 18 and paid the tax liability accordingly. During the year 2018-19 service provider provide only exempted services. Do service provider may apply for cancellation of registration? If yes, then which are the due date of liable to cancellation of registration? 

ANSWER

Law Applicable: Section 23: Persons not liable for registration
(1) The following persons shall not be liable to registration, namely:''

(a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

Thus in view of above if you are supplying only exempt services and you are not liable for compulsory registration as per Section 24, then you may apply for cancellation of registration as per Rule 22. There is no time limit specified for applying for cancellation of registration.