Cancellation of GST Registration

As per Sec­tion 29 of CGST Act 2017

The prop­er offi­cer may, either on his own motion or on an appli­ca­tion filed by the reg­is­tered per­son or by his legal heirs, in case of death of such per­son, can­cel the reg­is­tra­tion, in such man­ner and with­in such peri­od as may be pre­scribed, hav­ing regard to the cir­cum­stances where,––

  • the busi­ness has been dis­con­tin­ued, trans­ferred ful­ly for any rea­son includ­ing death of the pro­pri­etor, amal­ga­mat­ed with oth­er legal enti­ty, demerged or oth­er­wise dis­posed of; or
  • there is any change in the con­sti­tu­tion of the busi­ness; or
  • the tax­able per­son, oth­er than the per­son reg­is­tered under sub-sec­tion (3) of sec­tion 25, is no longer liable to be reg­is­tered under sec­tion 22 or sec­tion
  • The prop­er offi­cer may can­cel the reg­is­tra­tion of a per­son from such date, includ­ing any ret­ro­spec­tive date, as he may deem fit, where,––
    • a reg­is­tered per­son has con­tra­vened such pro­vi­sions of the Act or the rules made there­un­der as may be pre­scribed; or
    • a per­son pay­ing tax under sec­tion 10 has not fur­nished returns for three con­sec­u­tive tax peri­ods; or
    • any reg­is­tered per­son, oth­er than a per­son spec­i­fied in clause (b), has not fur­nished returns for a con­tin­u­ous peri­od of six months; or
    • any per­son who has tak­en vol­un­tary reg­is­tra­tion under sub-sec­tion (3) of sec­tion 25 has not com­menced busi­ness with­in six months from the date of reg­is­tra­tion; or
    • reg­is­tra­tion has been obtained by means of fraud, wil­ful mis­state­ment or sup­pres­sion of facts:

Pro­vid­ed that the prop­er offi­cer shall not can­cel the reg­is­tra­tion with­out giv­ing the per­son an oppor­tu­ni­ty of being heard.

  • The can­cel­la­tion of reg­is­tra­tion under this sec­tion shall not affect the lia­bil­i­ty of the per­son to pay tax and oth­er dues under this Act or to dis­charge any oblig­a­tion under this Act or the rules made there­un­der for any peri­od pri­or to the date of can­cel­la­tion whether or not such tax and oth­er dues are deter­mined before or after the date of
  • The can­cel­la­tion of reg­is­tra­tion under the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act, as the case may be, shall be deemed to be a can­cel­la­tion of reg­is­tra­tion under this
  • Every reg­is­tered per­son whose reg­is­tra­tion is can­celled shall pay an amount, by way of deb­it in the elec­tron­ic cred­it ledger or elec­tron­ic cash ledger, equiv­a­lent to the cred­it of input tax in respect of inputs held in stock and inputs con­tained in semi-fin­ished or fin­ished goods held in stock or cap­i­tal goods or plant and machin­ery on the day imme­di­ate­ly pre­ced­ing the date of such can­cel­la­tion or the out­put tax payable on such goods, whichev­er is high­er, cal­cu­lat­ed in such man­ner as may be pre­scribed:

Pro­vid­ed that in case of cap­i­tal goods or plant and machin­ery, the tax­able per­son shall pay an amount equal to the input tax cred­it tak­en on the said cap­i­tal goods or plant and machin­ery, reduced by such per­cent­age points as may be pre­scribed or the tax on the trans­ac­tion val­ue of such cap­i­tal goods or plant and machin­ery under sec­tion 15, whichev­er is high­er.

The amount payable under sub-sec­tion (5) shall be cal­cu­lat­ed in such man­ner as may be pre­scribed.

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