GST Registration Cancellation

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Completely managed GST registration cancellation service with Expert Support. Applicable for entities with no activities.

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    GST Cancellation

    GST registration can be cancelled voluntarily if the business is dormant or does not have the necessary business turnover. Further, a GST registration can also be cancelled by a GST officer if the business is non-compliant under GST. Once GST registration is cancelled, the person or entity is no longer required to file GST returns and is not required to pay or collect GST.

    Voluntary GST Cancellation

    If a person or entity with GST registration wishes to cancel their GST registration, a cancellation request must be submitted to the GST Department in Form GST REG-16. After reviewing the application, if the GST Officer is satisfied, he or she will issue an order to terminate GST registration in Form GST REG-19.

    The following are some of the top reasons for voluntary GST registration cancellation:

    • Discontinuance or closure of a business.
    • Transfer of business, amalgamation, merger, de-merger, lease, or other pertinent reasons.
    • Change in the constitution of business which results in a change of PAN.
    • Turnover reduces below the threshold limit of GST registration.
    • Death of the sole proprietor.

    Voluntarily cancelling a GST registration can save the business owner from unnecessary hassles of filing GST returns each month and payment of penalty or late-filing fee.

    Cancellation by GST Officer

    An officer can initiate the cancellation of a GST registration under GST if the Officer has justification to cancel the GST registration. The proceedings for GST Cancellation by Officer will begin by issuing a show-cause notice in Form GST REG-17.

    A GST officer can start the cancellation process if any of the following events occur.

    • If a taxpayer has failed to file GST returns continuously.
    • An assessee registered for GST voluntarily but did not start a business within six months.
    • The registered taxpayer has broken one or more sections of the GST Act or its Rules.
    • The GST registration is obtained through deception or malicious misrepresentation.
    • To dodge tax or improperly claim the input tax credit, a taxpayer supplies goods or services without an invoice or produces an invoice without a provision of goods or services.

    In case of cancellation by the GST Officer, the Officer would notify the taxpayer whose GST registration is liable to be terminated before cancellation. The taxpayer would then be given a reasonable opportunity to be heard before their GST registration is cancelled.

    The notice to the taxpayer from GST Officer would be sent in Form GST REG-17 with specific reasons why the GST registration should be cancelled. The notice would also allow the taxpayer to respond to the notice and have a date and time if a hearing is scheduled.

    If the taxpayer responds to the notice and the proper authority is satisfied with the response, he or she may dismiss the case and issue an order in Form GST REG-20. If he is not satisfied, he may issue a Form GST REG-19 order cancelling the GST registration.

    Procedure for GST Registration Cancellation

    Easebis can help taxpayers cancel their GST registration online. Before beginning the process, the taxpayer must file all overdue GST returns. If there is non-compliance with the GSTR-3B, GSTR-1, or GST annual return, the late return must be filed before the GST cancellation process can begin.

    Step 1: GST cancellation application is submitted using Form GST REG-16 on the common GST portal. The following information must be included in the GST cancellation application.

    • Contact address, which includes the mobile number and e-mail address.
    • Reason for cancellation.
    • The desired date of cancellation.
    • Particulars of the value and the tax payable on the stock of inputs, the inputs available in semi-finished goods, inputs available in finished goods, and the stock of capital goods/plant and machinery.
    • Particulars of the latest GST return are filed by the taxpayer along with the ARN of the particular return.

    Step 2: The GST Officer has to review the application and issue an order cancellation in the Form GST REG-19 within 30 days from the application’s date. The cancellation will be effective from a date determined by the Officer, and he will notify the taxable individual.

    Consult an Easebis GST Expert if you have a GST registration you want to cancel. We’ll check your GST return filing status, assist you in completing any outstanding GST returns, and file for GST cancellation.

    We will also monitor your GST registration cancellation application, reply to any questions, and assist you in completing the process once you have submitted it.

    Final Return

    An LUT can be submitted by any individual who is registered under GST provided he has not been executed in case of tax evasion exceeding Rs.250 lakh or any other offense.

    1. LUT cover letter – request for acceptance – duly signed by an authorized person
    2. Copy of GST registration
    3. PAN card of the entity
    4. KYC of the authorized person/signatory
    5. GST RFD11 form
    6. Copy of the IEC code
    7. Cancelled Cheque
    8. Authorized letter

    Preparing to Cancel GST Registration

    Before starting the GST cancellation process, the applicant must pay any overdue GST liabilities. Furthermore, the taxpayer must remit the input tax in the stock of inputs, semi-finished goods, finished goods, and capital goods, or the output tax liability of such goods, whichever is larger.

    The input tax credit on the current stock must be repaid, as the taxpayer will no longer be eligible to claim ITC if the GST registration is cancelled.

    GST electronic credit or cash ledger can be used to make the final GST payment. The final payment can be made at the same time that the final GSTR-10 return is being filed.

    Rejection of application for GST cancellation

    In some instances, the concerned Officer may decide to reject the application for the following reasons.

    • The submitted application is incomplete.
    • In the transfer, merger, or amalgamation of business, the new entity has not registered with the tax authority before applying.

    In such circumstances, the concerned Officer provides an intimation in writing to the applicant regarding the discrepancy’s nature. The applicant must respond to the same within seven days of the date of receipt of the letter. If the applicant fails to do the same, he may reject the application after providing him/her with an opportunity to be heard.

    The input tax credit on the current stock must be repaid, as the taxpayer will no longer be eligible to claim ITC if the GST registration is cancelled.

    GST electronic credit or cash ledger can be used to make the final GST payment. The final payment can be made at the same time that the final GSTR-10 return is being filed.

    Revocation of GST Cancellation

    Revocation of GST cancellation means that the cancellation decision has been overturned, and the registration remains valid. This only applies when a tax officer cancels a taxable person’s registration on his initiative. A taxpayer can apply within thirty days of receiving the cancellation order for revocation of the order. The following are the steps to file for revocation of GST cancellation:

    If a registered person’s registration has been cancelled suo-moto by the proper Officer, an application for revocation of cancellation in form GST REG-21 can be filed within 30 days of cancellation order.

    If the GST Officer is satisfied, he or she can rescind the cancellation of registration within 30 days of receiving the application by issuing an order in form GST REG-22. Reasons for registration revocation or cancellation must be documented in writing.

    Further, the Officer can also issue an order in form GST REG-05 rejecting the revocation application and informing the applicant. However, before rejecting an application, the Officer must send the applicant a show-cause notice in GST REG–23, asking them to explain why the application should not be refused. Within seven working days of receiving the notice, the applicant must respond in form GST REG-24. The proper officer will decide within 30 days of receiving the applicant’s clarification in form GST REG-24.

    Benefits of Voluntary GST Cancellation

    If no business activity occurs after acquiring GST registration, the taxpayer must begin the GST cancellation process as outlined. If a taxpayer stops filing GST returns and allows his GST registration to lapse, he will be unable to apply for fresh GST registration using the same PAN.

    Further, if the government cancels a GST registration, the taxable person must first apply for the cancellation to be revoked by paying any late fees. Following the restoration, appropriately cancel the GST or continue filing GST returns.

    As a result, once a GST registration is received, the taxpayer must keep track of compliance. Hence, if there is no commercial activity, apply for GST registration cancellation as soon as possible.

    Documents Required For GST Registration Cancellation

    PAN Card

    PAN card of the authorized signatory

    Aadhar Card

    Aadhaar card of the authorized signatory

    Last Return Details

    Details of the last return filed by the taxpayer

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    Frequently Asked Questions (FAQs)

    Can I cancel GST registration without filing returns?

    No. GST registrations cannot be cancelled without filing returns. Taxpayers must first complete the filing of GST returns. Then, the taxpayer must submit form GSTR-10 (also known as Final Return) to apply for cancellation of GST registration. The time window for cancellation is around 1-2 weeks.

    Is it mandatory to record them manually approved LUT in online records?

    It is not mandatory, but if the Taxpayer wants to record the manually approved LUT to be available in online records, he can furnish it with the online application.

    Who has to sign the LUT application?

    Primary authorized signatory/Any other Authorized Signatory needs to sign and file the verification with DSC/EVC. The authorized signatory can be the working partner, the managing director, or the proprietor or by a person duly authorized by such operating partner or Board of Directors of such company or proprietor to execute the form.

    How would I know that the process of furnishing the LUT has been completed?

    After successful filing, the system will generate ARN and acknowledgment. You will be informed about successful filing via SMS and Email, and you can also download the acknowledgment as a PDF.

    Can a taxpayer cancel their GST registration voluntarily?

    Yes, a taxpayer can cancel their GST registration voluntarily if they are no longer carrying out business activities or if they want to merge their registration with another GSTIN.


    Is there any penalty for cancelling GST registration?

    No, there is no penalty for cancelling GST registration. However, any outstanding tax liabilities need to be cleared before cancellation.


    Is there any time limit for cancelling GST registration?

    There is no time limit for cancelling GST registration. However, the taxpayer should ensure that all tax liabilities are cleared before cancelling the registration.

    Can a cancelled GST registration be reinstated?

    Yes, a cancelled GST registration can be reinstated by filing a fresh application and paying any outstanding tax liabilities.


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

    1. No, GST registration is linked to a specific business. A taxpayer cannot cancel the registration for one business and continue to operate another business with the same GSTIN.


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


    No, GST registration cannot be cancelled during an ongoing audit or investigation by the GST department. The cancellation can only be processed once the audit or investigation is completed.


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