GST Registration Cancellation

Reasons for Cancellation

• Business has been discontinued, dissolved, or transferred
• Turnover has fallen below the registration threshold and you want voluntary cancellation
• Change in business constitution (proprietorship to partnership, partnership to company, etc.) — new GSTIN needed
• Death of proprietor (legal heir applies)
• Officer-initiated cancellation (suo-motu) for non-compliance — not filing returns for 6 months, fraud, etc.

Voluntary Cancellation Process

1. File Form GST REG-16 on gst.gov.in within 30 days of the event triggering cancellation
2. Provide reason — dissolution, transfer, amalgamation, demerger, change of constitution, etc.
3. Declare stock on hand as on the cancellation date — input ITC, capital goods ITC
4. Pay tax on the stock (whichever is higher of: ITC availed or output tax)
5. Officer issues Form GST REG-19 (cancellation order) within 30 days if satisfied

Suo-Motu Cancellation

The proper officer can cancel registration if:

• Registered person doesn't conduct business from declared place
• Issues invoices without actual supply (fake invoices)
• Doesn't file returns for 6 consecutive months (3 for composition dealers)
• Voluntary registrant doesn't commence business within 6 months
• Registration obtained by fraud or misstatement

Officer issues REG-17 (show cause notice) → you reply in REG-18 → final cancellation in REG-19.

Final Return — GSTR-10

Within 3 months of cancellation order, file GSTR-10 (final return):

• Stock of inputs and capital goods on cancellation date
• Tax payable on such stock
• Tax already paid

Late fee: ₹200/day (₹100 CGST + ₹100 SGST), cap ₹10,000.

Revocation of Cancellation

If your registration was cancelled by officer (not voluntary) and you want to reverse it:

• File Form GST REG-21 within 90 days of cancellation order (extendable by Commissioner)
• File all pending returns and pay all dues first
• Officer issues revocation order in REG-22 if satisfied

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