How to Cancel GST Registration (and Revoke a Cancellation)

To cancel your GST registration yourself, file REG-16 on the GST portal within 30 days of the reason arising, such as closing or transferring the business. The officer then issues a cancellation order in REG-19. If instead the officer cancelled your registration (often for not filing returns), you can apply for revocation in REG-21 within 90 days, but only after filing all pending returns and paying the dues.

When can you cancel GST registration voluntarily?

Under Section 29(1), you or your legal heirs can apply to cancel when:

• the business has closed, been transferred, merged, demerged or otherwise disposed of, including on the death of the proprietor;
• the constitution of the business changes, for example a proprietorship becomes a partnership or company (the new entity needs its own registration);
• you’re no longer liable to be registered, for instance because turnover has fallen below the threshold and no compulsory category applies;
• you registered voluntarily and now want to opt out.

Tip: If your turnover is below the threshold but customers or marketplaces need your GSTIN, consider whether the composition scheme would be a better option than cancelling.

How to cancel GST registration online (REG-16)

1. Log in to the GST portal and go to Services > Registration > Application for Cancellation of Registration.
2. Give the reason and the date from which you want cancellation.
3. Enter details of stock held (inputs, semi-finished and finished goods, capital goods) on that date, and the tax payable on it.
4. Add details of the successor business, if transferred.
5. Sign with DSC or EVC and submit.
6. File all returns up to the date from which you’ve asked for cancellation. While the application is pending, your registration is suspended, and returns aren’t required for the suspension period.

The officer may seek clarifications. Once satisfied, they issue REG-19, the cancellation order. If the officer has no objection, this should come within 30 days.

What you must pay when you cancel

Under Section 29(5), you must pay back the input tax credit (ITC), the GST you claimed on purchases, on stock and capital goods held on the day before cancellation. Pay the higher of that ITC or the tax payable on those goods. You can pay from your credit or cash ledger.

Example: On the cancellation date, a shop holds stock bought for ₹2,00,000 on which it claimed ₹36,000 ITC (18%, intra-state: ₹18,000 CGST + ₹18,000 SGST). If the output tax on that stock would be lower than ₹36,000, the shop pays back ₹36,000 when it cancels.

When can an officer cancel your GST registration?

Under Section 29(2) and Rule 21, an officer can cancel, even from a retrospective date, if you:

Ground	Detail
Non-filing (monthly filers)	Returns not filed for a continuous period of six months
Non-filing (quarterly / QRMP filers)	Returns not filed for two consecutive tax periods
Non-filing (composition)	Annual return not filed for more than three months after the due date
No business at the address	Not conducting business from the declared place
Fake invoicing	Issuing invoices without actual supply
Return mismatch	Outward supplies in GSTR-1 exceeding those in GSTR-3B, among other mismatches
Voluntary registration unused	Business not started within six months of registration
Fraud	Registration obtained by fraud or wilful misstatement

The officer’s process

1. Show cause notice in REG-17, which explains why your registration should not be cancelled. Your registration may be suspended at the same time, which blocks e-way bills and new filings.
2. Your reply in REG-18 within 7 working days. File the pending returns at the same time.
3. The decision: the officer drops the proceedings in REG-20 or cancels in REG-19.

Most cancellations for non-filing can be avoided by responding to REG-17 promptly. Our guide on responding to GST notices has more detail. If nothing happened in your business for those months, see how to file nil returns.

How to revoke cancellation of GST registration (REG-21)

Revocation applies only where the officer cancelled on their own motion. You can’t revoke a cancellation you asked for.

1. File all pending returns up to the cancellation date and pay tax, interest, penalty and late fees. Rule 23 doesn’t allow a revocation application until this is done when the cancellation was for non-filing. See our guide to GST late fees and interest.
2. Apply in REG-21 within 90 days of the date the cancellation order was served. With sufficient cause, a Joint or Additional Commissioner (or higher) can extend this by up to 180 days.
3. The officer either revokes in REG-22 within 30 days, or issues a notice in REG-23. Reply in REG-24 within 7 working days.
4. After revocation, file any returns for the period between cancellation and revocation within 30 days of the revocation order.

Watch out: Since the November 2025 tax period, the GST portal blocks returns filed more than three years after their due date (GSTN advisory of 29 October 2025). If cancellation followed years of non-filing, some old returns may no longer be fileable, and that can complicate revocation. Get professional advice early in such cases.

If the revocation is rejected or the time limit has passed, the remaining routes are an appeal or a fresh registration. Both are best discussed with a professional.

After cancellation: final return GSTR-10

Regular taxpayers whose registration is cancelled must file GSTR-10, the final return, within three months of the cancellation date or the cancellation order date, whichever is later. It reports stock held and the ITC reversed on it. Missing it can lead to a notice and a late fee.

Common mistakes

• Stopping returns as soon as you apply. File returns up to the effective cancellation date.
• Forgetting the ITC reversal on stock, then getting a demand later.
• Ignoring REG-17 because “the business is small”. Cancellation from a retrospective date can make old sales taxable without ITC.
• Missing the 90-day revocation window while waiting for funds to clear dues.
• Not filing GSTR-10.
• Assuming cancellation clears past liabilities. It doesn’t. Notices for earlier periods can still be issued.

What to do next

1. Decide whether you want to close (REG-16) or need to keep the GSTIN (respond to REG-17, or revoke).
2. List every pending return and its due date. Older returns may be close to the three-year limit.
3. Work out the ITC to reverse on closing stock.

Our GST return filing service can bring pending returns up to date and prepare GSTR-10. For a cancelled registration that you need restored, request a callback and we’ll review your case.