GST Registration Cancellation and Revocation — When and How to Apply

There are situations where a GST-registered business needs to cancel its registration — when the business closes, when turnover falls below the threshold, or when a business is converted into a different entity. Conversely, a business may need to revoke a cancellation if it was done by mistake or the issue causing cancellation has been rectified. Here is the complete guide.

Voluntary Cancellation of GST Registration

A registered taxpayer can voluntarily apply to cancel their GST registration under Rule 20 of the CGST Rules in the following situations:

• The business has discontinued or been closed down
• Annual turnover has fallen below the mandatory threshold (₹40 lakh for goods, ₹20 lakh for services)
• The business has been transferred, merged or amalgamated
• A change in constitution of the business (e.g., proprietorship to company)

Voluntary Cancellation Process — Form GST REG-16

Step 1: File Form GST REG-16 on the GST portal, providing the reason for cancellation, the date from which cancellation is sought and details of stock held as on the date of cancellation.

Step 2: Pay any pending GST on stock held at the time of cancellation. The cancellation applicant must reverse ITC on closing stock and pay the equivalent tax.

Step 3: File all pending GST returns up to the date of cancellation application.

Step 4: The GST officer reviews the application and issues Form GST REG-19 (Cancellation Order) within 30 days if satisfied.

Suo Motu Cancellation by the GST Officer

The GST officer can cancel a registration without the taxpayer's application under certain conditions:

• Taxpayer has not filed GSTR-3B for 6 consecutive months
• Taxpayer has not commenced business within 6 months of voluntary registration
• Registration obtained by fraud, wilful misstatement or suppression of facts
• Business is found to not exist at the registered address

Before cancelling, the officer issues a Show Cause Notice (Form GST REG-17). The taxpayer has 7 working days to respond in Form GST REG-18.

Revocation of Cancellation — Form GST REG-21

If a registration was cancelled by the officer (not voluntarily), the taxpayer can apply for revocation within 90 days of the cancellation order using Form GST REG-21. The application must be accompanied by filing all pending returns and paying all outstanding dues.

If 90 days have passed, an appeal can be filed before the Appellate Authority. Beyond that, an application can be made to the High Court.

Final Return After Cancellation

After GST registration is cancelled, the taxpayer must file a Final Return in Form GSTR-10 within 3 months of the date of cancellation or the date of cancellation order, whichever is later. Failure to file GSTR-10 attracts a notice and continued late fees.

Conclusion

GST cancellation and revocation require careful compliance to avoid penalties and recovery proceedings. SPOTON assists businesses across Kerala with the complete GST cancellation process — from filing all pending returns to obtaining the cancellation order. Contact us for professional GST services.