GST Cancellation Form
GST Cancellation
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REASON FOR CANCELLATION
The registration can be canceled for the following reasons:
- A person registered under any of the existing laws, but who is not liable to be registered under the GST Act.
- The business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with another legal entity, demerged, or otherwise, 11 disposed of.
- there is any change in the constitution of the business; a) the taxable person (other than the person who has voluntarily taken registration under sub-section (3) of section 25 of the CGST Act, 2017) is no longer liable to be registered.
- A registered person has contravened such provisions of the Act or the rules made thereunder.
- A person paying tax under Composition levy has not furnished returns for three consecutive tax periods.
- Any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months.
- Any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration.
- Registration has been obtained by means of fraud, wilful misstatement, or suppression of facts.
- A Proper officer under GST can either himself if he may consider necessary to do so, or an application filed by the registered person or by legal heirs of the registered person, in case of death of such person, can cancel the GST registration of the taxpayer.
- However, it is to be noted that once the person obtained GST registration voluntarily, he cannot apply for GST Registration cancellation before the expiry of one year from the effective date of registration.
- Prior to the cancellation of registration, the officer would issue a notice to such person whose GST registration is liable to be canceled, requiring show cause within seven working days from the date of service of such notice as to why the GST registration should not be canceled. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand canceled.
Introduction to GST Cancellation
What is GST Cancellation?
GST cancellation is the formal process of terminating a registered business’s GSTIN (Goods and Services Tax Identification Number) with the government. It indicates that the business is no longer liable to collect GST, file returns, or comply with GST law provisions. Once cancelled, the taxpayer cannot legally conduct taxable business activities. The cancellation must be declared on the GST portal and approved by the jurisdictional officer.
Cancellation can be initiated voluntarily by the taxpayer or compulsorily by the GST department in cases of non-compliance, fraudulent registration, or business closure. It is crucial for ensuring that inactive or unqualified businesses are not burdened with continued compliance or legal risk.
When is GST Cancellation Required?
GST cancellation becomes necessary in a wide range of business scenarios. Common situations where cancellation is applicable include:
- Business Closure: If a registered business has permanently shut down operations or has ceased to exist.
- Change in Business Structure: In case of mergers, acquisitions, partnerships ending, or conversion to another legal entity.
- Transfer of Business: When the business ownership is sold or transferred to another party.
- Voluntary Registration Withdrawal: When the business had voluntarily registered under GST but later falls below the turnover threshold.
- Ineligibility to Remain Registered: For example, opting out of the GST Composition Scheme or failing to meet other regulatory criteria.
- Migration Issues: If a business was automatically migrated during GST implementation but is not actively conducting business.
Filing for cancellation in these cases helps avoid compliance issues, legal complications, and future penalties.
Legal Provisions and Governing Rules
GST cancellation is primarily governed under the Central Goods and Services Tax (CGST) Act, 2017, particularly:
- Section 29 of CGST Act – Covers provisions for cancellation and revocation of registration.
- Rule 20 to Rule 22 of CGST Rules – Lays down the detailed process, forms, and timelines to be followed for cancellation.
Cancellation may occur:
- Voluntarily, through Form GST REG-16, when the taxpayer initiates the process.
- Suo-motu, by the department, if:
- Returns are not filed for a continuous period (as per rules),
- Registration was obtained fraudulently or without proper documentation,
- There is non-operation at the declared place of business.
In case of suo-motu action, a show cause notice is issued via Form GST REG-17, and the taxpayer must respond using REG-18 within the stipulated time. After due verification, if satisfied, the officer passes the final cancellation order via Form GST REG-19.
Types of GST Cancellation
Understanding the types of GST cancellation helps businesses determine the appropriate route based on their situation. GST registration can be cancelled voluntarily by the taxpayer, initiated by the GST authorities (suo moto), or due to legal events such as business closure or transfer. Each type follows a specific process and legal requirement governed by the CGST Act, 2017 and relevant rules. Below are the three primary types:
Voluntary GST Cancellation
Voluntary cancellation occurs when a registered taxpayer chooses to surrender their GST registration. This usually happens under the following conditions:
- ● The business has ceased operations permanently.
- ● The business turnover has fallen below the GST threshold and no longer requires registration.
- ● The taxpayer had voluntarily opted for GST registration but does not wish to continue.
To initiate cancellation, the taxpayer must file Form GST REG-16 via the GST portal, providing reasons, last return details, and supporting documents. After review, the GST officer will issue a cancellation order in Form GST REG-19. It's essential that all dues and returns are cleared before applying.
Voluntary GST Cancellation
Voluntary cancellation occurs when a registered taxpayer chooses to surrender their GST registration. This usually happens under the following conditions:
- ● The business has ceased operations permanently.
- ● The business turnover has fallen below the GST threshold and no longer requires registration.
- ● The taxpayer had voluntarily opted for GST registration but does not wish to continue.
To initiate cancellation, the taxpayer must file Form GST REG-16 via the GST portal, providing reasons, last return details, and supporting documents. After review, the GST officer will issue a cancellation order in Form GST REG-19. It's essential that all dues and returns are cleared before applying.
Suo Moto Cancellation by GST Officer
Suo moto cancellation is initiated by the GST authorities due to non-compliance or regulatory violations by the taxpayer. Common triggers include:
- ● Failure to file GST returns for a continuous period.
- ● Issuance of invoices without actual business operations.
- ● Business found to be non-existent at the declared address.
- ● Fraudulent registration or misuse of GSTIN.
In such cases, a show cause notice (Form GST REG-17) is issued, and the taxpayer must respond within 7 working days using Form GST REG-18. If the officer is unsatisfied with the response, the registration is cancelled via Form GST REG-19. The taxpayer may also appeal or apply for revocation, if eligible.
Suo Moto Cancellation by GST Officer
Suo moto cancellation is initiated by the GST authorities due to non-compliance or regulatory violations by the taxpayer. Common triggers include:
- ● Failure to file GST returns for a continuous period.
- ● Issuance of invoices without actual business operations.
- ● Business found to be non-existent at the declared address.
- ● Fraudulent registration or misuse of GSTIN.
In such cases, a show cause notice (Form GST REG-17) is issued, and the taxpayer must respond within 7 working days using Form GST REG-18. If the officer is unsatisfied with the response, the registration is cancelled via Form GST REG-19. The taxpayer may also appeal or apply for revocation, if eligible.
Cancellation by Legal Operation (e.g., Business Closure)
GST registration is also cancelled automatically or through legal operation when a business:
- ● Closes permanently due to shutdown, insolvency, or liquidation.
- ● Merges with another company or undergoes structural reorganization.
- ● Transfers ownership through sale or inheritance.
In these cases, the company must apply for cancellation through REG-16, citing the reason and providing proof such as a dissolution deed, strike-off approval, or winding-up order. The cancellation ensures that the GST portal reflects the current legal status and helps avoid penalties on future non-filing.
Cancellation by Legal Operation (e.g., Business Closure)
GST registration is also cancelled automatically or through legal operation when a business:
- ● Closes permanently due to shutdown, insolvency, or liquidation.
- ● Merges with another company or undergoes structural reorganization.
- ● Transfers ownership through sale or inheritance.
In these cases, the company must apply for cancellation through REG-16, citing the reason and providing proof such as a dissolution deed, strike-off approval, or winding-up order. The cancellation ensures that the GST portal reflects the current legal status and helps avoid penalties on future non-filing.
Documents Required for GST Cancellation
To cancel a GST registration, specific documents must be submitted to support the application and ensure that the cancellation request is legitimate and properly processed. The required documents may vary slightly depending on the reason for cancellation (voluntary, suo moto, or legal), but generally include the following:
1. GSTIN of the Business
A valid GST Registration Number (GSTIN) for which the cancellation is being requested.
2. PAN and Aadhaar of Proprietor/Partners/Directors
Identity proof documents such as PAN and Aadhaar card of the person in charge, authorized signatory, or business owner.
3. Proof of Business Closure
If applicable, documents like closure affidavit, surrender of business license, board resolution, or partnership dissolution deed, etc., may be required to show that the business is no longer operational.
4. Last Filed GST Returns
Copies of the most recent GST returns (GSTR-3B, GSTR-1, etc.) are necessary to confirm that all dues and filings have been completed.
5. Declaration of No Liability
A self-declaration or affidavit that the business has no pending tax dues, interest, or penalties to be paid at the time of cancellation.
6. Bank Account Closure Proof (If Applicable)
If the business bank account is closed as part of the discontinuation, the closure letter or bank statement showing zero activity may be submitted.
7. Authorization Letter/Board Resolution (For Companies or LLPs)
A resolution passed by the board or partners authorizing a specific person to apply for GST cancellation on behalf of the business.
Step-by-Step Process for GST Cancellation
Cancelling a GST registration involves a series of legal and procedural steps through the GST portal. Whether the cancellation is voluntary or initiated by the department, it is essential to follow the correct procedure to avoid future liabilities and non-compliance issues.
Log in to the GST Portal
Access the GST Portal using your registered credentials. Navigate to the “Services” tab > “Registration” > “Application for Cancellation of Registration.”
Select the Reason for Cancellation
Choose the appropriate reason for cancellation from the dropdown list, such as:
● Business discontinued
● Transfer of business
● Change in business constitution
● Voluntary cancellation
Fill in the Required Details
Enter relevant business information including:
● Date from which cancellation is to be effective
● Tax payable on stock (if any)
● Details of closing stock and input tax credit reversal, if applicable
Upload Supporting Documents
Attach all required documents such as identity proof, closure affidavit, board resolution, or surrender of business licenses based on the type of business entity.
Submit Verification
The application must be verified using a Digital Signature Certificate (DSC), e-Sign, or EVC (OTP-based verification) depending on the user type.
ARN Generation
Upon submission, an Application Reference Number (ARN) is generated. This can be used to track the status of the cancellation request.
Processing and Approval
The GST officer reviews the application. If no clarification is required, cancellation is approved and an order (Form GST REG-16 or REG-19) is issued within 30 days.
Timelines and Acknowledgements
Once a GST cancellation application is submitted, specific timelines govern the processing, acknowledgment, and final closure of the GSTIN. Understanding these helps avoid unnecessary delays or compliance issues.
Processing Time by GST Department
The GST officer typically processes cancellation applications within 30 days from the date of ARN (Application Reference Number) generation. In cases where all details and documents are correctly submitted, approval may happen faster. If clarification or additional information is required, the officer may issue a notice under Form GST REG-17, to which the applicant must respond within 7 working days.
Auto-Cancellation Time for Non-Filers
As per GST law, if a taxpayer fails to file GST returns for a continuous period of 6 months (monthly filers) or 2 quarters (quarterly filers), the GST officer can initiate suo moto cancellation. In such cases, a show-cause notice is sent, and the GSTIN may be cancelled within 30 days, unless a valid reply is furnished.
Downloadable Cancellation Certificate
Once the cancellation is approved, a GST Cancellation Order is issued in Form GST REG-19, and a cancellation certificate can be downloaded from the GST portal. This serves as legal proof that the GSTIN is no longer active and is essential for record-keeping and audits.
Post-Cancellation Compliance
Cancelling a GST registration does not end all responsibilities. The taxpayer must fulfill certain post-cancellation obligations to avoid future legal or financial consequences.
Final Return Filing
(GSTR-10)
Every taxpayer whose GST registration is cancelled or surrendered must file a Final Return in Form GSTR-10 within 3 months from the date of cancellation. This return provides the closing statement of inputs held in stock and liabilities to be paid, if any.
Payment of Outstanding Liabilities
Any tax dues, interest, penalty, or late fees pending at the time of cancellation must be paid. These liabilities are reflected in GSTR-10, and payment is mandatory for completing the cancellation process. Failure to settle dues may attract notices and recovery action.
Record Keeping Obligations
As per Section 36 of the CGST Act, even after GST cancellation, businesses must maintain relevant records and books of accounts for 6 years from the date of cancellation. This includes invoices, ledgers, tax paid proofs, and filing acknowledgments in case of audits or legal inquiry.
Tax Credit Reversal
Rules
If any input tax credit (ITC) was availed on stock held at the time of cancellation, the same must be reversed. ITC reversal is required on inputs, semi-finished goods, or capital goods lying in stock, and must be calculated and paid as part of final return liabilities.
How Udyog Suvidha Kendra Helps You
End-to-End GST Cancellation Support
We handle your GST cancellation process from document preparation to final submission, ensuring legal accuracy, timely filing, and proper coordination with the GST portal to avoid delays or rejections.
Expert Compliance and Final Return Filing
Our experts assist in accurate GSTR-10 filing, tax liability calculation, and ITC reversal as per GST rules—ensuring your business stays fully compliant post-cancellation.
Revocation & Post-Cancellation Advisory
If your GSTIN was cancelled by the department, we help assess eligibility, file revocation requests (REG-21), and guide you on record keeping, tax dues, and regulatory obligations after cancellation.