Description

GST Registration Cancellation & Revocation

📌 Overview

Sometimes, after obtaining GST registration, businesses may find it necessary to cancel the registration due to various operational, structural, or legal reasons. Cancellation of GST registration can be voluntary or initiated by the tax department (SUO MOTO).

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🔁 Voluntary Cancellation of GST Registration

Taxpayers may apply for cancellation on the GST Portal using FORM GST REG-16 for reasons such as:

• 📝 GST registration was obtained erroneously.

• 🛑 Closure of business operations.

• 🚫 No longer liable to pay GST (turnover below threshold).

• 🔄 Transfer of business (sale, lease, merger, amalgamation, or demerger).

• 🔧 Change in business constitution requiring new PAN.

• ⏸️ Non-commencement of business after registration.

• ❌ No business activity being conducted.

⏳ Note: In case of voluntary registration, cancellation can be requested only after 1 year from the date of registration.

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⚖️ SUO MOTO Cancellation by Tax Authorities

A tax officer may cancel a GST registration on their own motion (SUO MOTO), under the following conditions, after providing an opportunity for a hearing:

• 🏢 Business is being conducted from a place other than the declared registered address.

• ☠️ In the event of the death of the sole proprietor.

• ⚠️ Business is operating against provisions of the GST Act, 2017.

• 🚷 Non-commencement of business within a reasonable period after registration.

• 🧾 Invoicing irregularities or non-compliance with invoicing provisions.

• 🔍 Any other violations deemed fit under the Act or notified rules.

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📤 Application Process for Cancellation

• Taxpayer submits Form GST REG-16 via the GST Common Portal.

• The GST Officer must verify and issue an order in Form GST REG-19 within 30 days of application.

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🔁 Revocation of Cancellation of GST Registration

In cases where registration has been cancelled, either voluntarily or by the officer, the taxpayer can apply for revocation:

• File an application for revocation within 30 days from the date of cancellation order.

• The officer may:

  • Accept the revocation and restore registration.

  • Reject the application, issuing a Show Cause Notice (SCN) stating reasons.

• The taxpayer must respond appropriately to the SCN for further consideration.

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✅ Benefits of Cancellation

• Eliminates the need to file monthly GST returns.

• Reduces the compliance burden for non-operational or dormant businesses.

• Prevents penalties for non-filing of returns if business activities have ceased.

Required Documents

• GST User ID and Password