GST registration can be cancelled either Suo moto or voluntary basis.

Why does GST registration cancellation is required?

The business has been discontinued.

The business has been transferred fully, amalgamated, demerged otherwise disposed off fully.

There is a change in the constitution of the business.

The death of sole proprietor

The taxpayer is no longer liable for registration.

Can any body apply for the GST cancellation process in India?

By Registered person

By the legal heirs

By the department of GST


1. Application in the FORM GST REG 16: The persons who wants cancellation must be file an application in the FORM GST REG 16.

The following details must be included in the FORM.

  • The details of values of ITC payable regarding the inputs, semi-finished goods, finished goods and capital goods which held in the stock.
  • The liability Thereon
  • Copy of transfer deed.
  • Date from which cancellation is sought.
  • Reasons
  • Copy of transfer deed.
  • Pan details

The proper officer must issue an order for cancellation in the FORM GST REG 19 within 30 days from the date of application.

Cancellation by tax officer

The proper officer may cancel the GST Registration if the taxpayer –

  1. Does not conduct any business from the declared place of business.
  2. Issues invoices without supply of goods and services in violation of provisions of the act.
  3. The registered person who has not file returns for the continuous of 6 months,
  4. The composition taxpayer who has not file for 3 consecutive tax periods.
  5. The registration obtained by through fraud or wilful misstatement and suppression of facts.

Response to notice

The taxpayer must reply to the said notice in the FORM of GST REG 18 within 7 days from the date of receipt of notice.

Order of GST Registration Cancellation

If the officer not satisfied with the reply given by the person, then the officer may proceed by issuing the FORM GST REG 19 is a Formal order for cancellation of registration.

If the officer is satisfied with the explanation, then the officer may issue the FORM GST REG 20 Which use to drop the cancellation proceedings and pass a formal order.

Revocation of cancellation of GST registration

The revocation of cancellation is only applicable when the department officer has cancelled the registration of the taxable person on his own motion. Such taxable person can apply for revocation in the GST REG-21 within 30 days from the date of cancellation of order.

Discharge of the tax liability:

Section 29(5) of the CGST ACT states that the taxpayer seeking the cancellation must discharge the liability through by debiting the electronic credit ledger or cash ledger or payment of output tax payable on the stock of finished goods and the semi-finished goods or capital goods before filing the GSTR 10.

Filing of the final return -GSTR 10

The GSTR 10 must be filed within three months from the date of cancellation order or the date of cancellation -whichever is later.

Suspension of GST Registration

The central board of indirect taxes and customs had issued a circular stating the standard operating procedure issued for implementation of suspension of GST Registration where significant deviation /anomalies are noticed between GSTR 3B and 1 or GSTR 3B and GSTR 2B.

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Disclaimer:“Information contained herein is for informational purposes only and should not be used in deciding any particular case. The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Though utmost efforts have been made to provide authentic information, it is suggested that to have better understanding and obtaining professional advice after thorough examination of particular situation.”

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Prepared By

N Lokesh

Article Assistant

Date: 30-10-2021