How to cancel gst registration online process -2024

How to cancel gst registration online process

How to cancel gst registration online process If you’re not subject to GST regulations, closing your business or profession, or if mandated by tax authorities, you can initiate the GST registration cancellation process. How to cancel gst registration online process This article provides an overview of different cancellation scenarios and the associated procedures. How to cancel gst registration online process Understanding the required steps and forms is crucial for a seamless cancellation process.

If you require professional assistance with the GST registration cancellation process, Taxgyany is here to support you. Leveraging our expertise and extensive experience, we can streamline the process, ensuring all requirements are met accurately and promptly.

Definition Cancellation of GST Registration

Cancellation of GST registration refers to the process of ceasing an individual’s or entity’s recognition as a registered taxpayer under GST. How to cancel gst registration online process Consequently, they are no longer required to collect, remit, or pay GST, and they cannot claim input tax credits. Furthermore, they are relieved from the obligation to file GST returns.

Who is Eligible for GST cancellation?

Under the GST framework, both a taxpayer and an official officer have the authority to initiate the GST registration cancellation process. How to cancel gst registration online process If deemed necessary by an official officer, they can commence the cancellation process by issuing a show-cause notice utilising the GST REG-17 form.


How to cancel gst registration online process
How to cancel gst registration online process


Requested by the Taxpayer

How to cancel gst registration online process The individual or entity holding the GST registration can voluntarily initiate the cancellation process if they believe they no longer need to be registered under GST or meet specific conditions for cancellation.

By Tax Officers

Tax officials have the authority to cancel a GST registration if they find that the taxpayer is not adhering to regulations or if there are discrepancies in the taxpayer’s conduct or submissions.

Who Cannot File for GST Cancellation?

Tax Deductor s / Tax Collectors: Individuals or entities registered explicitly for deducting or collecting taxes are not eligible to apply for cancellation.

Unique Identity Number (UIN) Holders: Entities or individuals, such as foreign diplomatic missions, UN bodies, etc., who have been assigned a UIN, cannot request the cancellation of GST registration. How to cancel gst registration online process The UIN is provided to them for claiming refunds on taxes for their inward supplies.


Conditions When GST Registration can be Cancelled:

The GST registration can be cancelled under various circumstances, such as


Tax Officer – Suo Moto Cancellation

A tax officer can commence the cancellation of GST registration under specific circumstances, which include:

  • The taxpayer is not conducting business from their registered place of business.
  • The taxpayer is issuing tax invoices without actually selling any goods or services.
  • The cancellation of GST registration by a tax officer may occur if there are breaches of the provisions of the act or the regulations established by the GST Council.
  • GST registration was obtained through fraudulent means or by misstating facts.
  • A taxpayer under the regular scheme has failed to file returns for six consecutive months.
  • A taxpayer under the Composition Scheme has not filed returns for three successive tax periods.


Taxpayer – Voluntary Cancellation


A registered taxpayer can voluntarily apply for cancellation of their GST registration under these circumstances:

  • The taxpayer has ceased or closed their business operations.
  • Business ownership has been transferred due to amalgamation, merger, de-merger, sale, lease, etc.
  • There has been a change in the business structure, resulting in a change in PAN (e.g., conversion of a proprietorship into a private limited company).
  • The taxpayer voluntarily registered but has not commenced business operations within a specified timeframe.
  • A taxable individual is no longer required to be registered under the GST Act.
  • The taxpayer is exempt from tax liability.

If someone has voluntarily registered, they can apply for cancellation only after one year has elapsed since the registration date.


Consequences of Cancellation of GST Registration:

No GST Payments: Once the GST registration is cancelled, the taxpayer is no longer required to make GST payments.

Mandatory Registration: Certain businesses are required to be registered under GST. If they cancel their GST registration but continue to operate, it constitutes a violation of GST regulations and can lead to severe penalties.


Forms Used for GST Cancellation:

GST REG 16: This form is utilised when a taxpayer voluntarily seeks the cancellation of their GST registration. How to cancel gst registration online process It applies only if there are no other considerations for the application, and at least one year has passed since the original GST registration.

GST REG 17: An authorised GST officer utilises this form to issue a show-cause notice regarding the potential cancellation of GST registration to the registered taxpayer or business entity. How to cancel gst registration online process The cancellation process by the officer begins after issuing the GST REG 17 form, which poses a query to the taxpayer, asking why the registration should not be terminated.

GST REG 18: In response to the show cause notice served through the GST REG 17 form, the taxpayer or entity can reply using the GST REG 18 form. How to cancel gst registration online process This reply, providing a defense or explanation against potential cancellation, must be submitted within seven days of receiving the initial notice.

GST REG 19: The GST officer employs this form to formally issue an order cancelling the GST registration. How to cancel gst registration online process This order must be issued within 30 days from either the date of the initial application or from the date of response received through the GST REG 18 form.

GST REG 20: How to cancel gst registration online process If the officer deems the response to the show cause notice satisfactory, they have the authority to cease any further actions regarding the cancellation of the registration. How to cancel gst registration online process This decision In such instances, the communication is transmitted using the GST REG 20 form.


How to cancel GST registration on the GST Portal:

  • Access the GST Portal:
    • Access the official GST Portal using your preferred web browser.
    • Once on the portal’s homepage, locate the login section.

Login with Your Credentials:

  • Enter your registered username and password in the respective fields.
  • Select the “Login” button to access your GST dashboard.

            Navigate to the Cancellation Application:

  • On the dashboard, hover over or click on the Services option in the main menu.
  • From the dropdown menu, select Registration. How to cancel gst registration online process  This will expand to display more options.
  • Select “Application for Cancellation of Registration” to open the cancellation form.

            Fill in the Details:

  • The cancellation form is divided into three sections: Basic Details, Cancellation Details, and Verification.


Basic Details Tab:

  • Address for Future Correspondence: Indicate where you would like to receive any correspondence related to this application.
  • Mobile Number: Input the mobile number linked to the GST registration.
  • Email Address: Provide the email address for communication regarding this application.

Cancellation Details Tab:

  • Select the reason for cancellation from the Below menu.
  • Depending on the reason chosen, additional fields may need to be filled, such as the date of business closure or transfer.

Verification Tab:

  • Authenticate the application’s information.
  • Select the name of the authorised signatory from the below list.
  • Specify the place where you are filling out this declaration.
  • Authenticate the application using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC), depending on the type of business entity.

Confirmation and Submission:

  • Review all details for accuracy.
  • Click the “Submit” button to complete the submission.
  • Upon successful submission, a confirmation message will appear, confirming receipt of your cancellation application.

Tracking the Application:

  • After submission, track the application’s status.
  • On the main dashboard, go to “Services” > “Registration” > “Track Application Status.”
  • Enter your ARN (Application Reference Number) to view the current status of your cancellation request.


Procedure for GST cancellation by Tax Officer:

  • The officer issues a show-cause notice in GST REG-17.
  • The recipient is required to respond within seven days using GST REG-18.
  • If the response is satisfactory, proceedings will be dropped, and an order will be issued in GST REG-20.
  • If not, a cancellation order will be issued in GST REG-19 within 30 days of receiving the response.


What will happen once registration is cancelled?

Once the tax official cancels the GST registration, the following actions will occur

  • Taxpayers will be notified about the cancellation via SMS and email. A cancellation order in GST Form REG-17 will be dispatched to taxpayers, which will also be available on their dashboard for viewing, printing, and downloading.
  • Taxpayers will be unable to file returns or upload invoices for the period after the cancellation date. Additionally, GST Practitioners (GSTP) will not be able to carry out GSTP functions after the cancellation date.
  • How to cancel gst registration online process Taxpayers will be prohibited from modifying registration details after the cancellation order is issued. However, email and mobile numbers can still be updated until all dues are settled.
  • The status of GSTIN will transition from ‘proceeding for cancellation initiated’ to ‘inactive,’ and this change will be communicated to other relevant tax authorities.


Revocation of Cancellation:

Revocation refers to overturning a previous decision, specifically in this context, reversing the earlier decision to cancel GST registration and reinstating it.


This process is applicable when the tax officer independently cancels a taxpayer’s registration. The taxpayer has the right to appeal for revocation within 30 days of receiving the cancellation order.

Procedure for Revocation:

  • Apply using GST REG-21 within 30 days of receiving the cancellation order.
  • The officer can either approve the revocation using GST REG-22 or reject it using GST REG-05.
  • Before rejection, a show-cause notice (GST REG-23) will be issued. The recipient must respond using GST REG-24 within seven days.
  • A final decision will be made within 30 days of receiving GST REG-24.

Note: An application for revocation is not valid if the cancellation was due to missed returns. How to cancel gst registration online process In such cases, all outstanding returns must be filed, along with any outstanding payments, before applying for revocation.

Can a Business Re-register for GST after Cancellation?

Yes, after cancellation, whether voluntary or by a tax officer, there are no restrictions preventing a business from re-registering for GST.

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