To cancel your GST registration, you file Form GST REG-16 on the GST portal within 30 days of the event that makes cancellation necessary, such as closing the business. The officer then issues a cancellation order in Form REG-19, and you file the final return GSTR-10 within three months. If the department cancelled your GSTIN on its own, you can apply for revocation in Form REG-21 within 90 days of the cancellation order.
What Is GST Cancellation and Revocation?
GST cancellation means your GSTIN is closed and you can no longer collect GST, issue tax invoices or claim input tax credit (ITC). It is governed by Section 29 of the CGST Act and Rules 20 to 22 of the CGST Rules. Cancellation can happen in two ways:
- Voluntary cancellation – you apply for it yourself.
- Suo motu cancellation – the GST officer cancels your registration on his own, usually for non-filing of returns or non-compliance.
Revocation (Section 30 read with Rule 23) means reversing a cancellation so the same GSTIN becomes active again. Revocation is available only where the officer cancelled the registration on his own motion. If you applied for cancellation yourself, you would normally need a fresh registration instead.
Cancellation does not wipe out past dues. Under Section 29(3), you remain liable for tax and other dues for the period before cancellation.
Who Can Apply for GST Cancellation?
A registered person (or a legal heir, in case of the death of a proprietor) can apply for cancellation in situations such as:
- The business has been discontinued or closed.
- The business has been transferred, merged, demerged or amalgamated with another entity.
- The constitution of the business has changed in a way that changes the PAN, for example a proprietorship converting into a company.
- The person is no longer liable to be registered, for example because turnover is below the threshold and registration is not otherwise mandatory.
- Death of the sole proprietor.
The officer can cancel a registration on his own if, among other grounds, the person has not filed returns for the continuous period specified in the law, has not started business within the prescribed time after voluntary registration, or obtained registration by fraud or wilful misstatement.
GST Cancellation Process Step by Step (Form REG-16)
- File all pending returns first. The portal and the officer will check your return status, so clear pending GSTR-1 and GSTR-3B before applying.
- Log in to the GST portal and go to Services > Registration > Application for Cancellation of Registration.
- Fill in Form GST REG-16 with your address for correspondence, reason for cancellation, the date from which cancellation is sought, and the value of stock and tax involved.
- Give successor details if the business is transferred or merged. The transferee’s GSTIN is required.
- Verify and submit the application using DSC or EVC. Note the ARN for tracking.
- Respond to any query. If the application is incomplete, the officer will ask for details, and you get seven working days to reply.
- Receive the order in Form REG-19. As per CBIC’s standard operating procedure (Circular 69/43/2018-GST), the officer is expected to accept a complete application within 30 days of filing. The cancellation date cannot be earlier than the date of application.
- File the final return GSTR-10 within the due date explained below.
Information and documents to keep ready
- GSTIN login credentials and a working DSC or Aadhaar-linked mobile for EVC.
- Reason for cancellation and supporting proof (closure resolution, transfer or merger documents, death certificate where relevant).
- Stock statement of inputs, semi-finished goods, finished goods and capital goods, with the tax involved.
- Details of the last return filed, with its ARN.
- GSTIN of the successor entity, if any.
ITC reversal on closing stock – Section 29(5)
On cancellation, you must pay back an amount equal to the ITC on inputs held in stock, inputs in semi-finished or finished goods, and capital goods, or the output tax payable on such goods, whichever is higher. Stock is valued as on the day before the cancellation date. This payment can be made through the electronic credit or cash ledger along with the final return. It is not a condition for submitting REG-16.
Forms and Time Limits at a Glance
| Form | Purpose | Time limit |
|---|---|---|
| GST REG-16 | Application for cancellation by taxpayer | Within 30 days of the event |
| GST REG-17 | Show cause notice by officer for suo motu cancellation | – |
| GST REG-18 | Reply to REG-17 | Within 7 working days of the notice |
| GST REG-19 | Order of cancellation | Within 30 days of application or reply |
| GSTR-10 | Final return | Within 3 months of the cancellation date or the order date, whichever is later |
| GST REG-21 | Application for revocation | Within 90 days of service of cancellation order (extendable by up to 180 days) |
| GST REG-23 / REG-24 | Notice for rejecting revocation / reply | Reply within 7 working days |
| GST REG-22 / REG-05 | Order of revocation / rejection | Within 30 days of application or reply |
GSTR-10 Final Return: Due Date and Late Fee
Every person whose registration is cancelled, whether voluntarily or by the officer, must file GSTR-10 under Section 45 read with Rule 81. Input Service Distributors, non-resident taxable persons, composition taxpayers, and persons deducting or collecting tax at source under Sections 51 and 52 are not required to file it.
- Due date: within three months of the date of cancellation or the date of the cancellation order, whichever is later.
- Late fee: under Section 47, ₹100 per day under CGST and ₹100 per day under SGST (₹200 per day in total), subject to a maximum of ₹5,000 each (₹10,000 in total).
- Non-filing: the department issues a notice in Form GSTR-3A. If the return is still not filed within 15 days, the officer can pass a best judgement assessment order in Form ASMT-13 under Section 62. Filing the return within 30 days of that order withdraws it, but interest and late fee remain payable.
How to Apply for Revocation of GST Cancellation (Form REG-21)
If your GSTIN was cancelled by the officer, usually because returns were not filed, you can get it restored instead of taking a new registration. The steps are:
- Clear all defaults. Where cancellation was for non-filing, you cannot apply until all pending returns are filed and the tax, interest, penalty and late fee on them are paid.
- File Form GST REG-21 on the portal (Services > Registration > Application for Revocation of Cancelled Registration) within 90 days of service of the cancellation order. Explain the reason and attach supporting documents.
- Seek an extension if late. On sufficient cause, the Commissioner or an authorised officer (not below the rank of Additional or Joint Commissioner) can extend the time by a further period of up to 180 days.
- Reply to any notice. If the officer is not satisfied, he issues a notice in REG-23. Reply in REG-24 within seven working days.
- Receive the order. The officer either revokes the cancellation in REG-22 or rejects the application in REG-05, within 30 days of the application or reply.
- File returns for the gap period. Returns for the period between the cancellation order and the revocation order must be filed within 30 days of the revocation order.
If revocation is rejected, you can file an appeal before the Appellate Authority under Section 107 within three months of the order.
Common Mistakes to Avoid
- Stopping business without cancelling. Return filing obligations and late fees continue as long as the GSTIN is active, even with zero sales.
- Forgetting GSTR-10. Many businesses assume the REG-19 order ends everything. The final return is still due and attracts late fee if missed.
- Ignoring the stock reversal. Not paying back ITC on closing stock under Section 29(5) can lead to a demand later.
- Ignoring a REG-17 notice. Replying in REG-18 within seven working days, after filing pending returns, is far easier than seeking revocation later.
- Missing the 90-day revocation window. After the extended period, revocation through REG-21 is generally not available, and you may need a fresh registration or an appeal.
- Applying for revocation with returns still pending. The application is not allowed until all returns and dues are cleared.
How Company Mitra Helps
- Voluntary cancellation: our experts check pending returns, calculate the ITC reversal on stock, file REG-16 and follow up until the REG-19 order is issued.
- Final return: we prepare and file GSTR-10 on time so that no late fee builds up.
- Revocation: we file pending returns through our GST return filing service, then draft and file REG-21 and any reply to REG-23.
- Fresh registration: if you need a new GSTIN for a new business or constitution, see our GST registration service.
You can also download free reply drafts for GST notices from our formats library.
Frequently Asked Questions
Is there a government fee for GST cancellation?
No government fee is charged for filing REG-16 or REG-21. However, you must clear pending tax, interest, late fee and the ITC reversal on closing stock.
Can I cancel GST registration if I have pending returns?
You should file all pending returns before applying. Pending returns can delay processing and will still have to be filed with late fee.
What is the time limit for revocation of GST cancellation?
90 days from the date of service of the cancellation order. This can be extended by up to 180 days more by the Commissioner or an authorised officer on sufficient cause.
Can I revoke a cancellation that I applied for myself?
No. Revocation under Section 30 is available only when the officer cancelled the registration on his own motion. After voluntary cancellation, you would need to apply for a new registration.
What is the late fee for not filing GSTR-10?
₹200 per day (₹100 CGST + ₹100 SGST), subject to a maximum of ₹10,000.
Does cancellation end my liability for past periods?
No. You remain liable for tax, interest and penalty for the period before cancellation, and the department can still raise demands for that period.
Need Help?
Cancellation and revocation have strict time limits, so act early.
Need help? Chat with our experts on WhatsApp: https://wa.me/919565039651
This article is for general information; please verify with the latest notifications or consult a professional before acting.
