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GST Registration Cancellation

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GST Registration Cancellation Done By Expert Mantra

Fully Managed GST Registration Cancellation Service with Expert Guidance – Ideal for Businesses with No Activity

  • Simple and smooth process

  • Quick and hassle-free completion

  • Support from in-house GST experts

  • 100% online documentation and filing

GST Registration Cancellation – A Brief Overview

GST cancellation is a process that allows businesses to discontinue their GST registration when it is no longer required. A business owner can apply for voluntary cancellation if their business has become inactive or does not meet the minimum turnover criteria for GST registration. This is often the case for businesses that have stopped operations or are not generating taxable supplies.

Apart from voluntary cancellation, a GST officer also has the authority to cancel a GST registration. This can happen if a business fails to comply with GST laws, such as not filing returns for a continuous period or violating tax regulations. Such cancellations are usually initiated after issuing proper notice to the taxpayer.

Once the GST registration is successfully cancelled, the individual or entity is no longer considered a registered taxpayer under GST. This means they are not required to collect GST on sales, pay GST to the government, or file regular GST returns. However, businesses must settle any pending tax liabilities before the cancellation is approved.

Documents Required For GST Registration Cancellation

PAN Card
The authorized representative must provide a valid PAN card as proof of identity for GST-related processes, ensuring accurate verification and compliance with government regulations.

Aadhaar Card
A valid Aadhaar card of the authorized representative is required to confirm identity, support authentication, and facilitate smooth processing of GST cancellation or related applications.

Last Return Information
Details of the latest GST return filed by the taxpayer must be submitted to verify compliance status before proceeding with GST registration cancellation or related filings.

Voluntary GST Registration Cancellation: Process, Reasons & Benefits

Businesses or individuals registered under GST can choose to cancel their registration voluntarily when it is no longer needed. To initiate this process, an application must be submitted to the GST Department using Form GST REG-16. Once the GST officer reviews the request and finds it valid, an official cancellation order is issued in Form GST REG-19, formally ending the GST registration.

Common reasons for voluntary GST cancellation include:

  • Business discontinuation or permanent closure

  • Transfer of business due to amalgamation, merger, de-merger, lease, or similar reasons

  • Change in the business structure leading to a new PAN

  • Turnover falling below the GST registration threshold

  • Death of a sole proprietor

Choosing voluntary cancellation helps businesses avoid unnecessary compliance burdens. Once the GST registration is cancelled, the owner is no longer required to file monthly GST returns or pay penalties for non-filing. This process ensures a smooth exit from GST obligations while remaining fully compliant with the law.

Documents Required for Filing LUT (Letter of Undertaking)

Any GST-registered individual or business can file an LUT (Letter of Undertaking), provided they have not been prosecuted for tax evasion exceeding ₹2.5 crore or for any other serious offense.

To submit an LUT, the following documents are typically required:

  • LUT cover letter – a signed request for acceptance by the authorized signatory

  • Copy of GST registration certificate

  • PAN card of the business/entity

  • KYC documents of the authorized person or signatory

  • Duly filled GST RFD-11 form

  • Copy of IEC (Import Export Code)

  • Cancelled cheque of the business bank account

  • Authorization letter for the person signing the LUT

Procedure for GST Registration Cancellation

Expert Mantra helps taxpayers seamlessly cancel their GST registration online. Before starting the cancellation process, taxpayers must ensure that all pending GST returns are filed. Any overdue GSTR-3B, GSTR-1, or annual returns must be submitted before initiating cancellation.

Step 1: Submit the GST cancellation application using Form GST REG-16 on the GST portal. The application must include:

  • Contact details (mobile number and email address)

  • Reason for cancellation

  • Proposed date of cancellation

  • Details of stock and tax payable on inputs, semi-finished goods, finished goods, and capital goods/plant & machinery

  • Details of the latest GST return filed along with the ARN of that return

Step 2: The GST Officer reviews the application and issues a cancellation order in Form GST REG-19 within 30 days. The effective date of cancellation will be decided by the Officer and notified to the taxpayer.

Consult an Expert Mantra GST Specialist to handle your cancellation request. We will verify your GST filing status, help you clear pending returns, file the cancellation application, track its progress, respond to queries, and ensure smooth completion of the entire process.

GST Registration Cancellation: Preparation, Rejection, and Revocation Process

GST registration cancellation requires clearing dues and repaying ITC. Applications may be rejected for discrepancies. Suo-moto cancellations can be revoked within 30 days through proper forms and officer approval.

Preparing for GST Registration Cancellation

Before applying for GST cancellation, the taxpayer must clear all pending GST dues. Additionally, they must pay the input tax credit (ITC) availed on available stock, including raw materials, semi-finished goods, finished goods, and capital goods, or the applicable output tax liability—whichever is higher.

Once the GST registration is cancelled, the taxpayer can no longer claim ITC. Therefore, repayment of ITC is mandatory. The final tax payment can be made through the GST electronic credit or cash ledger while filing the final GSTR-10 return.

Rejection of GST Cancellation Application

In certain cases, the GST officer may reject the cancellation application due to reasons such as:

  • Incomplete or incorrect application submission

  • Failure of the new entity to register before transferring, merging, or amalgamating a business

In such situations, the officer issues a written notice highlighting discrepancies. The applicant must respond within seven days of receiving the notice. If the response is unsatisfactory or not submitted, the officer may reject the application after giving the applicant an opportunity to be heard.

Revocation of GST Cancellation

Revocation refers to reversing the cancellation of GST registration, making it active again. This applies only when the cancellation was initiated by a GST officer (suo-moto).

  • A taxpayer can apply for revocation within 30 days of receiving the cancellation order using Form GST REG-21.

  • If the officer is satisfied, they will revoke the cancellation within 30 days by issuing Form GST REG-22, with documented reasons.

  • If not satisfied, the officer may reject the application using Form GST REG-05. However, before rejection, a show-cause notice (Form GST REG-23) is issued, requiring the taxpayer to justify why the application should not be refused.

  • The taxpayer must reply within seven working days using Form GST REG-24, after which the officer will decide within 30 days.

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Frequently Asked Questions…

Can I cancel GST registration without filing returns?

No, you must first file all pending GST returns before applying for cancellation. Non-compliance can delay or reject your cancellation request.

Is it mandatory to update manually approved LUT in online records?

Yes, if your LUT (Letter of Undertaking) is manually approved, you should upload it online for proper record maintenance and compliance.

Who needs to sign the LUT application?

The LUT application must be signed by the authorized signatory of the business, such as the proprietor, partner, or company director.

How will I know that my LUT has been successfully furnished?

After submission, you will receive an acknowledgment or confirmation on the GST portal, indicating successful furnishing of the LUT.

Can a taxpayer voluntarily cancel their GST registration?

Yes, taxpayers can apply for voluntary cancellation if their business is closed, transferred, or no longer meets GST turnover requirements.

Is there any penalty for cancelling GST registration?

No penalty applies for cancellation itself. However, pending dues and non-filed returns must be cleared to avoid penalties.

Is there a time limit to cancel GST registration?

There is no strict deadline, but it is advisable to apply immediately when the business becomes ineligible or inactive to avoid compliance issues.

Can a cancelled GST registration be reinstated?

Yes, if a GST officer cancels it, you can apply for revocation within 30 days to restore the registration.

Can a taxpayer cancel GST registration for one business while continuing another under the same GSTIN?

No, a GSTIN is unique to one PAN and state. To operate multiple businesses under the same GSTIN, you cannot partially cancel it.

Can GST registration be cancelled during an ongoing audit or investigation?

Generally, cancellation may be restricted until the audit or investigation is complete to ensure all compliance requirements are met.

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