GST Registration Cancellation: Cancellation under GST

The Government of India has systematized taxation through the implementation of the Goods and Services Tax (GST), integrating various taxes into a single indirect tax law applicable for entire nation. The authorities have mandated those businesses with a turnover exceeding INR 20 lakhs must register for GST, with special states having a threshold of INR 10 lakhs. Despite the compulsory registration, businesses also have the option to withdraw from the GST scheme by surrendering their GST Number, a process known as GST Registration cancellation.

What is GST Registration?

GST Registration forms the bedrock for Indian businesses, contributing to national tax revenue and navigating a user-friendly taxation system. At the core of India’s tax structure, GST functions as an all-encompassing indirect tax on goods and services. Crafted to supplant various indirect taxes, GST strives to streamline operations, foster transparency, and simplify compliance.

Eligibility pivots on aggregate turnover, with specific thresholds tailored for goods and service providers. The registration procedure involves online document submission, varying based on entity type, leading to the generation of a distinct Goods and Services Tax Identification Number (GSTIN), the process concludes with the issuance facilitated by the centralized GST Common Portal.

Voluntary registration is a viable choice for businesses falling below the threshold, offering perks such as input tax credit.

What is GST Registration Cancellation?

GST Registration Cancellation is a formal process that businesses or individuals undertake to discontinue their participation in the GST system. Various factors, such as business closure, ownership transfer, legal structure changes, or a decrease in turnover below the mandatory registration threshold, can be the reason for this procedure.

When a business is no longer obligated to pay GST or experiences significant structural alterations, the existing GST registration becomes outdated, necessitating the pursuit of cancellation. 

What are the documents required for GST Registration Cancellation?

Submit the following documents to the related GST authorities to cancel your GST Registration

  • Permanent Account Number (PAN)
  • Aadhar card 
  • Details of the last return filed
  • Tax Particulars 
  • Company Authority details 

How to initiate a GST Registration cancellation?

To initiate GST registration cancellation, taxpayers typically must submit a formal application to the relevant tax authority, accompanied by supporting documentation validating the reasons for cancellation. Settlement of any outstanding tax liabilities is often a prerequisite for approval. Tax authorities may conduct audits to ensure compliance with GST regulations before approving the cancellation. 

Furthermore, the cancellation process may differ between countries, emphasizing the importance for businesses to adhere to specific guidelines outlined by their respective tax authorities. Once approval is granted, the taxpayer receives official notification, and their GST registration is deactivated. Executing this process accurately is paramount to avoiding legal repercussions and ensuring a seamless exit from the GST system. 

Who can initiate a GST Registration Cancellation?

In India, the initiation of GST registration cancellation can be carried out by either the taxpayer or the tax officer. In cases where the taxpayer has deceased, the obligation to request cancellation rests with the legal heirs. The tax officer must follow a specified procedure for canceling GST registration, which includes serving a show cause notice to the registered entity.

The recipient is obligated to submit a response to the show cause within 7 working days from the date of the GST cancellation order. Non-compliance with this timeframe may lead to the cancellation of the GST number.  

Step by step Voluntary GST cancellation by the taxpayers

The procedures for canceling GST registration vary depending on whether the taxpayer is a migrated taxpayer or has issued tax invoices. The GST portal facilitates the cancellation of registration for migrated taxpayers, referring to those who haven’t issued tax invoices after registration. Taxpayers who have issued invoices must complete Form GST REG-16. The comprehensive GST cancellation process is as follows: 

  • Login to official portal:
    • Visit GST Portal, log in using your credentials, and access your GST account. 
  • Access the cancellation application:
    • On the GST account dashboard, go to the top bar menu, select ‘Service,’ then ‘Registration’ from the dropdown, and finally, choose ‘Application for Cancellation of Registration.’
    • The dashboard will present three sections: basic details, cancellation details, and verification. 
  • Provide basic information:
    • In the ‘basic details’ section, enter the required information.
    • If you wish to receive future communications at the same address as the principal place of business, mark the ‘same as above’ box and click ‘save and continue.’ 
  • Cancellation details section:
    • After saving basic details, proceed to the cancellation details section. 
  • Select cancellation reason:
    • Choose the reason for GST cancellation from the dropdown, including options like the death of a sole proprietor, cessation of tax liability, PAN change due to a business constitution change, business discontinuance, business transfer, and others. 
  • Provide additional information:
    • Furnish details such as the reason for GST cancellation, desired cancellation date, stocks and taxed inputs, and information about the latest tax returns filed.
Voluntary GST Cancellation procedure
  • Choose Ledger:
    • Indicate the stock value and tax liability by selecting either the electronic cash ledger or electronic credit ledger. 
  • Transferee entity details:
    • If the existing unit is transferred, merged, or demerged, input the GSTIN of the transferee entity. 
  • Verification section:
    • After completing the cancellation form, the verification section will appear.
    • Enter the place of declaration and the name of the authorized signatory. 
  • Authorized signatory information:
    • Fill in details of the authorized signatory in the next section and submit the relevant option. 
  • Submit using DSC or EVC:
    • Choose between ‘submit to Digital Signature Certificate (DSC)’ and ‘submit to Electronic Verification Code (EVC)’.
    • For those with a company/LLP, uploading the DSC is mandatory. Enter the OTP generated after submitting details.
    • An acknowledgment will be received within 15 minutes. 

In case of the demise of a sole proprietor, the legal successor should utilize Form GST REG-16 for applying GST registration cancellation. If the tax officer initiates GST cancellation, the taxpayer can request revocation using Form GST REG-21 within 31 days (about 1 month) from the issuance of the cancellation order. 

What are the needs for cancelling GST Registration?

You need to provide these below mentioned needs for the cancellation process. 

  • Obtained unique GSTIN number:
    • Providing GSTIN when a business wants to cancel its GST Registration is a crucial need, because it acts as an identification of taxpayers, verifies the details to prevent any kind of fraud and keeps the record. 
  • Stocks details:
    • Stock details are requested while cancelling your GST for the purpose of Verification of Compliance, Input Tax Credit (ITC) Reconciliation, Preventing Tax Evasion, Ensuring Compliance with Transition Provision. 
  • Details of pending penalties or Tax liability:
    • When a taxpayer begins the process of canceling their GST registration, it is crucial for them to provide thorough information about any pending taxes and penalties to the tax authorities.
    • This entails transparently disclosing any outstanding financial obligations that must be resolved before the cancellation can be authorized.

Revocation of GST Cancellation

If a tax officer cancels a taxpayer’s GST registration without the taxpayer’s request, the taxpayer can request the revocation of this cancellation within 30 days (about 4 and a half weeks) from the date of the cancellation order by submitting form GST REG-21. After receiving the revocation application, the GST Officer will review the case and, if satisfied, may issue an order in form GST REG-22 to reverse the cancellation of registration. 

However, before rejecting the application, the Officer must send a show-cause notice (GST REG–23) to the applicant, asking them to explain why the revocation should not be refused. The applicant has seven working days to respond to the notice using form GST REG-24. Following this, the proper officer will make a decision within 30 days (about 4 and a half weeks) of receiving the applicant’s clarification in form GST REG-24. 


Overall, the GST registration cancellation is crucial for Indian businesses wishing to exit the Goods and Services Tax system, whether initiated voluntarily or mandated by tax authorities. This process demands meticulous adherence to guidelines and thorough documentation submission.

In the case of voluntary cancellation, businesses must follow a stepwise procedure on the GST portal, providing essential details, reasons for cancellation, and relevant financial information. Transparency in disclosing pending penalties or tax liabilities is imperative. Businesses also retain the option to revoke GST cancellation within a specified timeframe, involving a thorough review and response process.

The accuracy of documentation, including GSTIN, stock details, and tax information, is pivotal. Diligence, strict compliance, and a comprehensive understanding of requirements are indispensable for a smooth exit from the GST system in India.

1. What situation lead a business to consider cancelling its GST Registration?

A business may contemplate cancelling its GST registration in scenarios such as ceasing operations, undergoing a change in ownership, experiencing alterations in legal structure, or witnessing a decrease in turnover below the mandatory registration threshold. 

2. Is it possible for businesses to voluntarily initiate the GST Registration cancellation process?

Yes, businesses can proactively initiate the cancellation process via the GST portal by following a designated step-by-step procedure. 

3. Could you outline the steps involved in the voluntary cancellation process on the GST portal?

Certainly. Businesses are required to log in to the GST portal, access the cancellation application, provide fundamental information, specify the reasons for cancellation, furnish details about stocks, and submit the application using either a DSC or EVC.

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