Cancellation of GST Registration (Section 29 of CGST Act)

The registration under GST will no longer be active and the dealer is not required to

• Pay/collect any GST
• Claim any input tax credit or
• File returns.

• Discontinuance of business
• Business has been transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of.
• Change in constitution of business.
• When the taxpayer is no longer required to be registered under section 22 or 24
• When the taxpayer intends to opt out of the registration voluntarily.

Frequently Asked Question

1. Does cancellation of registration mean that all the liabilities of the taxpayer cease to exist?

No, all liabilities pertaining to the period prior to the date of cancellation of GST registration needs to be paid by the taxpayer. Liabilities of such period has to be discharged even if determined after the date of cancellation.

Frequently Asked Question

2. Is the registered tax payer entitled to an opportunity of being heard before cancellation of registration?

Yes, the proper officer cannot cancel the registration without giving an opportunity of being heard to the registered taxpayer.

The Registered Dealer

• Does not conduct any business from the declared place of business
• issues invoice or bill without supply of goods or services
• Violates the provisions of section 171 (Anti Profiteering measure)
• Violates the provisions of rule 10A(Furnishing of bank account details)
• Avails input tax credit in violation of the provisions of section 16
• Details of outward supply in Form GSTR-1 for one or more tax periods is in excess of the outward supplies declared in return under section 39.
• Violates the provisions of rule 86B. (Restrictions on use of amount available in electronic credit ledger.)

• Every Registered person whose registration is cancelled shall pay an amount equivalent to,
  1. ITC in respect of inputs held in stock (and/or)
  2. ITC in respect of semi-finished or finished goods (and/or)
  3. ITC in respect of capital goods or plant or machinery
     on the day immediately preceding the date of such cancellation (or) the output tax payable on such goods (whichever is higher)

• By way of debiting the electronic credit ledger or electronic cash ledger.

• Application for cancellation of registration shall be filed electronically in form GST REG-16 on the common portal.
• The application should be submitted within 30 days of the occurrence of the event warranting cancellation.

Frequently Asked Question

3. I took voluntary registration under GST Act, should I wait for 1 year before applying for cancellation?

No, the provision requiring dealers who have registered voluntarily to wait for the expiry of 1 year from the date of registration is done away with by way of amendment to the GST rules. Henceforth, a registered dealer who has taken voluntary registration need not wait for the expiry of 1 year for applying for cancellation of registration.

• GSTR-10 is the final return to be filed by registered person who has opted for cancellation of registration
• GSTR-10 has to be filed within 3 months from the date of cancellation (or) date of order of cancellation (whichever is later).