Introduction
GST registration cancellation is required when a taxpayer is no longer liable to remain registered under GST law. Whether your business is closed, turnover falls below the threshold, or you have opted for a different tax structure, cancelling GST registration correctly is critical to avoid penalties, notices, and future compliance issues.
This Saving Mantra guide explains the step-by-step GST registration cancellation process, eligibility, documents required, timelines, and post-cancellation compliance in simple language.
What Is GST Registration Cancellation?
GST registration cancellation means the taxpayer is no longer registered under GST and is not required to:
- Collect GST
- File GST returns
- Claim Input Tax Credit (ITC)
Once cancelled, the GSTIN becomes inactive.
Who Can Apply for GST Cancellation?
You can apply for cancellation if:
- Business has been closed or discontinued
- Turnover is below GST threshold limit
- Business constitution has changed
- Registration obtained voluntarily but no longer required
- Migration from earlier tax regime not required
- Death of proprietor
- Business merged or transferred
Types of GST Registration Cancellation
1. Voluntary Cancellation
Applied by the taxpayer via GST portal.
2. Cancellation by GST Officer
Due to non-filing of returns, fake invoices, or non-operation.
3. Legal Cancellation
Due to death, merger, or business transfer.
Documents Required for GST Cancellation
- GSTIN
- Login credentials of GST portal
- Reason for cancellation
- Stock details (raw material, finished goods)
- Liability details (if any)
- Bank account details
- Authorization letter (if filed by consultant)
Step-by-Step Process for GST Registration Cancellation
Step 1: Login to GST Portal
Visit https://www.gst.gov.in and log in using your GST credentials.
Step 2: Navigate to Cancellation Application
Go to:
Services → Registration → Application for Cancellation of Registration
Step 3: Fill Basic Details
Enter:
- Reason for cancellation
- Date from which cancellation is required
- Whether tax payable on stock
Step 4: Provide Stock & Liability Details
Mention:
- Stock value held on cancellation date
- ITC reversal if applicable
- Outstanding tax, interest, or penalty
Step 5: Update Bank Account Details
Enter correct bank details for any refund or adjustment.
Step 6: Verification & Submission
Verify the application using:
- DSC (Companies/LLPs)
- EVC (Proprietorship/Firms)
Submit the application.
Step 7: Acknowledgement & Tracking
You will receive an ARN (Application Reference Number) to track the status.
GST Officer Review & Approval
- Officer may approve directly
- Or issue Show Cause Notice (SCN)
- Reply must be filed within 7 working days
Upon approval, GST cancellation order (FORM GST REG-19) is issued.
Time Limit for GST Cancellation
- Application should be filed within 30 days of becoming liable
- Officer usually approves within 7–15 working days
Post-Cancellation Compliance
Even after cancellation, you must:
- File Final Return (GSTR-10) within 3 months
- Clear pending tax liabilities
- Reverse ITC on closing stock (if applicable)
Failure may result in penalties.
Common Mistakes to Avoid
- Not filing pending GST returns before cancellation
- Incorrect stock or ITC declaration
- Missing GSTR-10 filing
- Selecting wrong cancellation date
- Ignoring GST notices
Why Choose Saving Mantra for GST Cancellation?
- Expert GST professionals
- End-to-end documentation handling
- Notice & compliance support
- Fast processing with accuracy
- Affordable professional fees
Frequently Asked Questions (FAQs)
Is GST cancellation mandatory after business closure?
Yes, GST registration must be cancelled to avoid future penalties.
Can GST be cancelled online?
Yes, cancellation is fully online through the GST portal.
Is GST cancellation reversible?
Once cancelled, fresh registration is required to restart.
Is GSTR-10 compulsory?
Yes, final return filing is mandatory after cancellation.
Conclusion
GST registration cancellation is a legally sensitive process that must be completed correctly to avoid penalties and future compliance issues. Filing accurate details, clearing dues, and completing post-cancellation returns are crucial.
For a smooth and error-free GST cancellation, professional support can save time, money, and legal stress.