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Understanding GST Registration Cancellation by Tax Authorities

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Created on
May 11, 2023


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GST (Goods and Services TAX) is the new tax regime introduced to bring more transparency to the tax system by eliminating several forms of taxes like VAT, excise duty, etc. GST registration is mandatory for businesses with an annual turnover exceeding a certain threshold. However, sometimes in certain circumstances, the tax officer may cancel the GST registration of a business. This can be done because of several reasons. To save yourself from this difficulty, you must be aware of the reasons behind it.

Reasons for Cancellation of GST Registration

Your business may face cancellation of registration under GST in the following situations:

Non-Filing of Returns

The tax officer can initiate cancellation procedures if your company consistently fails to file GST returns for six months.

Non-Commencement of Business

If your business fails to commence operations within six months of obtaining GST registration, this may also initiate cancellation proceedings.

Voluntary Cancellation

You may request for cancellation of GST registration if you want to terminate it voluntarily. However, the tax officer may reject the application if there are any outstanding liabilities or legal proceedings.

Mismatch in Information

The tax officer can commence cancellation procedures if there is a discrepancy between the information supplied in the GST registration application and the actual company activities.

Non-Maintenance of Records

If your business fails to maintain proper records of its transactions, the tax officer may initiate cancellation proceedings.

Procedure for Cancellation of GST Registration

Here are the steps involved in the cancellation of GST registration:

Step 1: Issuing of Show-Cause Notice

The tax officer begins the cancellation process by sending the registered business a show-cause notice. The cause for the cancellation and the date and time of the hearing are all included in the notification.

Step 2: Submission of Response

Within the allotted time, the registered business must respond to the show-cause notice, either admitting or disputing the grounds for cancellation. If the registered firm acknowledges the grounds for cancellation, it must assure that all obligations will be fulfilled before the termination date.

Step 3: Personal Hearing

Once the tax office has received the show-cause notice response, a personal hearing will be held. The registered firm might offer further details and explanations at the hearing to persuade the tax officer to revoke the registration.

Step 4: Cancellation Order

After reviewing the submission and holding the hearing, the tax officer may accept or reject the registered company's explanation. If the tax office is unsatisfied with the reason, he may issue an order in Form GST REG-19 stating the cancellation's effective date.

Step 5: Surrender of GST Certificate and Documents

The registered firm must relinquish the GST certificate and all other GST registration documents within a certain time frame.

Step 6: Payment of Dues

The registered corporation must pay all dues and liabilities before the cancellation occurs.


To summarise, the cancellation of a GST registration by a tax official is a serious matter that can have major consequences for a firm. To prevent cancellation, following GST requirements and filing GST returns regularly is critical.

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Frequently Asked Questions

1. What are the documents required for GST cancellation?

Here is the list of documents:

  • PAN card
  • Aadhaar card
  • Last GST return details
  • GST certificate
  • GST REG-16 form
  • GSTIN of the transferee entity
  • Business address proof

2. How long does it take to cancel GST registration?

It may take up to 30 days to complete the procedure of GST registration cancellation.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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