Cancelling your own registration
Under section 29(1) of the CGST Act, a registered person can apply for cancellation in Form GST REG-16, for example when the business is closed, transferred or merged, the constitution changes so that a new PAN is needed, or turnover has fallen and registration is no longer required.
- Before you apply: file all pending returns and pay tax due.
- In the application: give the reason, the date from which cancellation is sought, and details of stock and capital goods on hand.
- Tax on stock: on cancellation you pay an amount equal to the input tax credit on stock, semi-finished and finished goods and capital goods held on that day, or the output tax on them, whichever is higher (section 29(5)).
- Suspension: once you apply, the registration is treated as suspended, and you cannot make taxable supplies or issue tax invoices.
- Order: the officer passes the cancellation order in REG-19.
A voluntarily registered person can apply for cancellation too. A business only moving premises or changing name needs an amendment, not a cancellation.
When the officer cancels it
Section 29(2) lets the officer cancel a registration, including from a past date, if, among other grounds:
- a regular taxpayer has not filed returns for the prescribed continuous period;
- a composition taxpayer has not filed the annual return within three months of its due date;
- a voluntarily registered person has not started business within six months; or
- the registration was obtained by fraud, wilful misstatement or suppression of facts.
The officer first issues a show cause notice in REG-17. Reply in REG-18 within 7 working days of service. The officer then either drops the proceedings (REG-20) or cancels the registration (REG-19). The registration may also be suspended while proceedings are pending, with a notice in REG-31. Never ignore these notices; see our GST notice day-1 action plan.
Revoking a cancellation
- Who: a person whose registration was cancelled by the officer on the officer's own motion.
- Form and time: REG-21 within 90 days from the date of service of the cancellation order. The Commissioner, or an officer not below Joint Commissioner, can extend this by up to 180 days for sufficient cause.
- First fix the cause: where cancellation was for not filing returns, file all pending returns and pay the tax, interest and late fees first.
- Outcome: the officer revokes the cancellation in REG-22. If the officer proposes to reject it, you get a notice in REG-23 and can reply in REG-24; an application cannot be rejected without a hearing.
If the revocation window has passed, an appeal against the cancellation order is the usual route. Returns that are more than three years past their due date can no longer be filed on the portal, so act quickly.
The final return: GSTR-10
Every person whose registration is cancelled, voluntarily or by the officer, files a final return in GSTR-10 within three months of the date of cancellation or of the cancellation order, whichever is later (section 45). Late filing carries a late fee, and the officer can issue a notice and assess the tax.
If you have pending GST returns, our GST late fee calculator shows the fee and interest.
Talk to Regikart
We file the cancellation and the final return, reply to REG-17 and REG-31 notices, clear pending returns and file revocation applications within the deadline. See GST return filing and GST notice reply, or call or WhatsApp +91 70444 94804.
Frequently asked questions
How do I cancel my GST registration?
File Form GST REG-16 on the GST portal with the reason, the date and details of stock, after filing pending returns. The officer passes the order in REG-19. Then file the final return in GSTR-10.
What is the time limit for revocation of GST cancellation?
90 days from the date of service of the cancellation order, in Form REG-21. It can be extended by up to 180 days for sufficient cause.
Can I revoke a cancellation I applied for myself?
Revocation in REG-21 is for cancellations made by the officer on his own motion. If you cancelled voluntarily and need GST again, apply for a fresh registration.
How long do I have to reply to a REG-17 notice?
Seven working days from service, in Form REG-18.
What is GSTR-10?
The final return filed by a person whose GST registration is cancelled, due within three months of the date of cancellation or of the cancellation order, whichever is later.
About the author
Regikart CA Team
Chartered Accountants at Regikart. Want to discuss this in the context of your business?
