Complete guide to cancelling your GST registration — whether voluntary (by taxpayer) or suo-motu (by officer). Learn the process, ITC reversal requirements, GSTR-10 final return obligations, and consequences of cancellation.
Taxpayer no longer liable for registration due to turnover below threshold, business closure, transfer, merger, or demerger. Must apply within 30 days of event.
Tax officer initiates cancellation if taxpayer has not filed returns for 6+ consecutive months, obtained registration by fraud, or violates GST provisions.
In case of death of sole proprietor, the legal heir or successor can apply for cancellation of the deceased's registration.
Visit gst.gov.in → Login → Services → Registration → Application for Cancellation of Registration.
Choose the applicable reason from the dropdown — business closed, transferred, turnover below threshold, etc. Enter the effective date of cancellation.
Declare stock held on the cancellation date — inputs, semi-finished goods, finished goods, and capital goods. System calculates ITC to be reversed.
Pay tax on stock: higher of (a) ITC on inputs/capital goods or (b) tax on market value of stock. This is payable through GSTR-10 final return.
Attach supporting documents — board resolution, affidavit, or transfer deed. Verify via DSC/EVC and submit.
File GSTR-10 within 3 months of cancellation date or date of cancellation order (whichever is later). Pay balance tax due.
Under Section 29(5), ITC must be reversed on stock held on the date of cancellation:
| Item | Calculation Basis | Example |
|---|---|---|
| Inputs held in stock | ITC availed on those inputs | ₹50,000 stock → reverse ₹9,000 (18% GST availed) |
| Semi-finished goods | ITC attributable to inputs in semi-finished goods | ₹1,00,000 WIP → reverse proportionate ITC |
| Finished goods | ITC on inputs in finished goods | ₹2,00,000 FG → reverse ITC on raw material component |
| Capital goods | ITC minus 5% per quarter (or part) | ₹1,00,000 ITC, used 8 quarters → reverse ₹60,000 |
No longer authorized to charge GST on invoices. Must stop issuing GST invoices.
Lose ability to claim Input Tax Credit on purchases. Any unclaimed ITC is forfeited.
Cannot sell through e-commerce platforms like Amazon, Flipkart as they require active GSTIN.
Cannot make inter-state sales — no GST registration means no way to charge IGST.
Must file final return GSTR-10 within 3 months. Non-filing attracts ₹200/day penalty (max ₹10,000).
No. All pending GSTR-1 and GSTR-3B returns must be filed up to the effective date of cancellation before the application is processed. Clear all dues and file all returns first.
You receive a show-cause notice (REG-17). You have 7 working days to respond with REG-18. If the officer is not satisfied, cancellation order (REG-19) is issued. You can apply for revocation within 30 days.
Yes, if cancelled by officer (suo-motu), you can apply for revocation via REG-21 within 30 days. If voluntarily cancelled, you must apply for fresh registration — revocation is not available.
GSTR-10 must be filed within 3 months from the date of cancellation or the date of cancellation order, whichever is later. Late filing attracts a penalty of ₹200/day (₹100 CGST + ₹100 SGST), capped at ₹10,000.
If you're no longer liable but don't cancel, you must continue filing NIL returns. Non-filing attracts late fees of ₹50/day (₹20/day for NIL) per return, and eventually the officer may initiate suo-motu cancellation.