GST Cancellation: Cancellation of GST Registration, A Detailed helpful Article

Under this Act, any GST registration granted can be cancelled by the proper officer under certain circumstances, as outlined in this section. The cancellation may occur either on the officer’s own accord or upon application by the registered person. Some of the reasons for cancellation include discontinuation or full transfer of the business, amalgamation with another entity, change in the business’s constitution, or the registered person no longer being liable to be registered.

The proper officer may also cancel the GST registration retroactively if the registered person contravenes any provisions of the Act or related Rules, fails to file returns for a specific period, fails to commence business within six months of registration, or obtained registration through fraudulent means. The registered person must be given an opportunity to be heard before cancellation.

The CGST (Amendment) Act, 2018 allows for the suspension of GST registration during proceedings related to cancellation. Cancellation does not absolve the taxable person of their liability to pay taxes and dues under the Act for any period before or after cancellation.

A person seeking to cancel their GST registration must file their final return in Form GSTR-10 to complete the cancellation process. An application for cancellation of registration by a registered person must be made in Form GST REG-16. Rule 21 of the CGST Rules, 2017 outlines additional circumstances for cancellation, such as conducting no business from the declared place, issuing invoices without supplying goods or services, or violating anti-profiteering measures or related Rules.

A person with a turnover below the threshold limit who voluntarily obtained GST registration may seek cancellation at any time during the year, as opposed to waiting for one year from the effective date of registration. However, persons required to deduct or collect tax at source or those to whom UID is granted are exempt from this provision.

Reasons for Cancellation

Under the provisions of the Goods and Services Tax (GST) Act, there are several reasons that could lead to the cancellation of a GST registration. Some of these reasons are:

  1. Transfer of business or discontinuation of business: If a business is transferred to another person or is discontinued, the GST registration of the business may be cancelled.
  2. Change in the constitution of business: If there is a change in the constitution of a business, such as a partnership firm being changed to sole proprietorship due to the death of one of the partners, this could lead to a change in the Permanent Account Number (PAN) of the business and subsequently, the cancellation of the GST registration.
  3. Persons no longer liable to be registered: If a person is no longer liable to be registered under sections 22 or 24 of the GST Act or intends to opt out of voluntary registration, their GST registration may be cancelled.
  4. Contravention of the provisions of the Act: If a registered taxable person contravenes the provisions of the GST Act as may be prescribed, their GST registration may be cancelled.
  5. Non-filing of GST returns: If a composition supplier has not furnished returns for three consecutive tax periods or any other registered person has not furnished returns for a continuous period of six months, their GST registration may be cancelled.
  6. Non-commencement of business: If a person who has registered voluntarily does not commence business within six months from the date of registration, their GST registration may be cancelled.
  7. Obtaining registration through fraudulent means: If a registration has been obtained by means of fraud, willful misstatement, or suppression of facts, the registration may be cancelled with retrospective effect.

It is important for businesses to comply with the provisions of the GST Act to avoid the cancellation of their GST registration.

Final GST Return

According to Section 45 of the GST Act, any registered person who is obligated to submit a return under Section 39(1) and has had their registration cancelled must file a final return in FORM GSTR-10 on the GST portal. This return must be submitted within three months from the date of cancellation or the date of the cancellation order, whichever is later. Rule 81 specifies the format for this final return.

If you want to cancel your GST registration, you can seek the advice of a Chartered Accountant (CA) in Gurgaon. They can guide you through the process and ensure that all the necessary documents are in order. A CA in Gurgaon can also help you determine whether you are eligible for cancellation and what the implications of cancelling your registration may be. They can provide you with valuable insights and advice on any potential issues or challenges you may encounter during the cancellation process. With the help of a CA in Gurgaon, you can streamline the process and ensure that it is completed efficiently and effectively.


Q: Is it possible to cancel the registration certificate granted under the Act?

A: Yes, the registration certificate can be cancelled by the proper officer under specific circumstances as outlined in Section 29 of the Act. The cancellation can be initiated by the officer on his own or upon an application filed by the registered person or their legal heirs. The cancellation process must be carried out in the prescribed manner and within the prescribed time period.

Q: If registration is cancelled under the CGST Act, does it automatically cancel the registration under the SGST Act?

A: Yes, the cancellation of registration under the CGST Act or the SGST Act is considered to be a cancellation of registration under both acts respectively.

Q: Can the proper officer cancel the registration without any application from the registered person?

A: Yes, the proper officer has the authority to cancel the registration on his own accord. However, the officer must follow the principles of natural justice, which include issuing a notice and providing an opportunity to be heard.

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