Step-by-Step Guide
8 Steps
How to Cancel or Surrender GST Registration in India
Complete guide on how to cancel or surrender GST registration in India. Covers voluntary cancellation using GST REG-16, cancellation by department, filing GSTR-10 final return, and revocation of cancelled GST registration in 2026.
Quick Overview
Estimated Cost
₹2000
Time Required
15 to 30 Days
Total Steps
8 Steps
What You'll Need
Documents Required
- GSTIN (GST Identification Number) of the taxpayer
- Login credentials for the GST portal (gst.gov.in)
- PAN card of the business or proprietor
- Details of closing stock and capital goods as on the date of cancellation
- Details of Input Tax Credit (ITC) to be reversed on closing stock and capital goods
- Last filed GST return details (GSTR-3B and GSTR-1)
- Copy of board resolution or partnership deed authorisation for cancellation (for companies and LLPs)
- Bank account details linked to the GSTIN
- Digital Signature Certificate (DSC) or EVC for authentication
Tools & Prerequisites
- GST portal (gst.gov.in) for filing cancellation application and GSTR-10
- Accounting software or records for computing ITC reversal and closing stock value
- Tax calculator for determining output tax liability on closing stock
- DSC token or Aadhaar-linked mobile for EVC authentication
- GSTR-2A/GSTR-2B reports for ITC reconciliation before cancellation
GST registration cancellation or surrender is the process of deactivating your GSTIN when you no longer need to remain registered under the Goods and Services Tax regime. Whether your business has shut down, your turnover has dropped below the threshold limit, or your entity is undergoing closure or restructuring, you must formally cancel your GST registration through the prescribed process on the GST portal.
This guide covers everything you need to know about cancelling GST registration in India, including the types of cancellation, eligibility criteria, the step-by-step process for filing GST REG-16, ITC reversal requirements, the final return (GSTR-10), and how to revoke a cancelled registration if needed.
Types of GST Cancellation
GST registration can be cancelled in three ways:
- Voluntary cancellation by the taxpayer: The taxpayer applies using GST REG-16 when they no longer need or qualify for registration
- Suo motu cancellation by the GST officer: The tax authority cancels the registration for non-compliance, fraud, or prolonged non-filing of returns
- Cancellation on death of the proprietor: The legal heir applies for cancellation when a sole proprietor passes away
Grounds for Voluntary Cancellation
Under Section 29(1) of the CGST Act, a registered person can apply for cancellation in the following situations:
- The business has been permanently discontinued or closed
- The business has been fully transferred to another entity (including amalgamation or merger)
- There is a change in the constitution of the business (for example, proprietorship converting to a company)
- The annual turnover has fallen below the registration threshold (40 lakh for goods suppliers, 20 lakh for service providers, reduced limits for special category states)
- The taxable person is no longer liable to be registered under GST
- Death of the sole proprietor
If you registered voluntarily under GST (when your turnover was below the threshold), you cannot apply for cancellation until one year from the effective date of registration. This prevents misuse of voluntary registration for short-term ITC claims.
Grounds for Suo Motu Cancellation by the Department
Under Section 29(2), the proper officer can cancel a taxpayer registration under the following circumstances:
- Contravention of GST provisions (fraud, misrepresentation, suppression of facts)
- Non-filing of returns for 6 consecutive months by a regular taxpayer
- Non-filing of returns for 3 consecutive quarters by a composition dealer
- Registration obtained through fraud, wilful misstatement, or suppression of facts
- Failure to commence business within 6 months of voluntary registration
- Invoice issued without actual supply of goods or services (bill trading)
Step 1: File All Pending GST Returns
Before applying for cancellation, ensure that all GSTR-1 and GSTR-3B returns are filed up to the date of the last tax period. The GST portal will block the cancellation application if there are any unfiled returns.
Check your return filing status on the GST portal under the Returns Dashboard. File any pending returns and pay all outstanding tax liabilities including interest on late payments. Reconcile your GST return filings with your accounting records to ensure no transactions are missed.
Step 2: Calculate ITC Reversal on Closing Stock
One of the most important steps in GST cancellation is computing the ITC that must be reversed. Under Section 29(5), whenever a registration is cancelled, the registered person must pay an amount equal to the credit of input tax on the following:
What Requires ITC Reversal
| Category | Reversal Computation |
|---|---|
| Inputs held in stock | Higher of ITC as per books on remaining stock, or tax on market value of inputs |
| Inputs in semi-finished goods | Higher of ITC attributable to inputs in semi-finished goods, or tax on market value of inputs |
| Inputs in finished goods | Higher of ITC attributable to inputs in finished goods, or tax on market value of inputs |
| Capital goods | ITC taken minus 5 percent per quarter (or part thereof) from the date ITC was taken |
For capital goods, the useful life is taken as 5 years (60 months). If you claimed ITC of 1,00,000 rupees on a machine 2 years ago, the reversal would be 1,00,000 minus 40% (5% per quarter for 8 quarters) which is 60,000 rupees. Only the remaining useful life portion is reversed.
Step 3: File GST REG-16 on the Portal
Follow these steps to file the cancellation application on the GST portal:
- Log in to gst.gov.in with your username and password
- Go to Services, then Registration, then Application for Cancellation of Registration
- The GST REG-16 form opens with your basic details pre-filled
- Select the reason for cancellation from the dropdown
- Enter the desired effective date of cancellation
- Provide details of the closing stock of inputs, semi-finished goods, finished goods, and capital goods
- Enter the amount of ITC to be reversed and tax payable
- Select the relevant tax heads and enter the amounts (IGST, CGST, SGST)
- Upload supporting documents (board resolution, dissolution deed, etc.)
- Verify using DSC (mandatory for companies and LLPs) or EVC for other entities
- Submit the application
Once the GST REG-16 application is submitted, your registration status changes to "Suspended" immediately. During suspension, you cannot issue tax invoices, collect GST, or make taxable supplies. The suspension continues until the officer issues the final cancellation order (REG-19) or rejects the application.
Step 4: Respond to Officer Queries (If Any)
After submission, the jurisdictional officer may issue a show cause notice in GST REG-18 requesting additional information or clarification. Common queries include:
- Discrepancy in closing stock details with the last filed returns
- Pending demand notices or assessment orders against the GSTIN
- Ongoing investigation or audit proceedings
- Insufficient documentation for the reason of cancellation
You must respond to REG-18 within 7 working days using the GST REG-24 form on the portal. Failure to respond may result in rejection of the cancellation application or the officer proceeding with suo motu cancellation.
Step 5: Receive Cancellation Order (REG-19)
If the officer is satisfied with the application and response (if REG-18 was issued), they issue the cancellation order in GST REG-19. This order specifies the effective date of cancellation and confirms that the GSTIN has been deactivated. Download and save this order from the GST portal for your records.
Step 6: File GSTR-10 (Final Return)
After receiving the cancellation order, you must file the final return in GSTR-10 within 3 months from the date of the order or the date of cancellation, whichever is later. GSTR-10 must include:
- Details of closing stock of inputs, semi-finished goods, finished goods, and capital goods
- Amount of ITC reversed
- Amount of tax payable and tax paid
- Particulars of any pending liabilities
GSTR-10 is not required to be filed by composition dealers, non-resident taxable persons, persons paying TDS under Section 51, persons paying TCS under Section 52, and Input Service Distributors.
How to Revoke a Cancelled GST Registration
If your GST registration was cancelled by the department (suo motu) and you wish to continue operating, you can apply for revocation of the cancellation order. Here is the process:
- File all pending GSTR-3B and GSTR-1 returns up to the date of cancellation with full tax payment and late fees
- Log in to the GST portal and go to Services, then Registration, then Application for Revocation of Cancelled Registration
- Fill the GST REG-21 form with the reason for seeking revocation
- Upload supporting documents
- Submit using DSC or EVC
- The officer reviews the application and may issue a notice for additional information
- If approved, the officer issues the revocation order in GST REG-22 and the registration is reactivated
The revocation application must be filed within 30 days from the date of service of the cancellation order. Missing this deadline means you cannot revoke the cancelled registration and will need to apply for a fresh GST registration. However, the GST Council has periodically announced amnesty schemes extending this deadline for eligible taxpayers.
GST Cancellation for Companies and LLPs
When cancelling GST as part of the closure of a company or LLP, the process must be coordinated with the overall entity closure timeline. The recommended sequence is:
- Pass a board resolution (company) or obtain partner consent (LLP) for closure and GST cancellation
- File all pending GST returns and pay all outstanding dues
- Apply for GST cancellation using GST REG-16
- Receive the cancellation order (REG-19)
- File GSTR-10 final return
- Proceed with the company strike-off or LLP closure application with the ROC
It is advisable to complete GST cancellation before filing the company or LLP strike-off application with the ROC to avoid complications. The MCA may raise objections if the entity GST registration is still active at the time of the closure application.
Key Forms in GST Cancellation Process
| Form | Purpose | Filed By |
|---|---|---|
| GST REG-16 | Voluntary cancellation application | Taxpayer |
| GST REG-17 | Show cause notice for suo motu cancellation | Proper Officer |
| GST REG-18 | Show cause notice seeking clarification on REG-16 | Proper Officer |
| GST REG-19 | Order of cancellation | Proper Officer |
| GST REG-20 | Order of dropping cancellation proceedings | Proper Officer |
| GST REG-21 | Application for revocation of cancelled registration | Taxpayer |
| GST REG-22 | Order of revocation of cancellation | Proper Officer |
| GST REG-24 | Reply to show cause notice (REG-17 or REG-18) | Taxpayer |
| GSTR-10 | Final return after cancellation | Taxpayer |
Common Mistakes to Avoid
- Not filing pending returns before applying: The portal blocks the REG-16 application if returns are pending. File all GSTR-1 and GSTR-3B before starting the cancellation process
- Incorrect ITC reversal calculation: Underestimating or overestimating the ITC reversal amount leads to queries from the officer or excess payment. Use proper valuation for closing stock and the 5-year rule for capital goods
- Forgetting to file GSTR-10: Many taxpayers complete the cancellation but forget to file GSTR-10 within 3 months. This creates penalties and complications for future registrations
- Continuing to collect GST after suspension: Once REG-16 is submitted, the registration is suspended. Any GST collected after suspension is illegal and must be deposited without claiming ITC
- Not informing vendors and customers: Failure to notify suppliers and buyers about the cancellation creates GST reconciliation issues for them, especially when they try to claim ITC on your invoices
- Missing the 30-day revocation window: If the department cancels your registration and you want to continue business, apply for revocation within 30 days. Missing this deadline requires a fresh registration
Conclusion
Cancelling or surrendering GST registration is a structured process that involves filing all pending returns, computing ITC reversal on closing stock and capital goods, submitting GST REG-16 on the portal, responding to officer queries, and filing the final return GSTR-10 after the cancellation order is issued. The process typically takes 15 to 30 days from application to final order.
It is important to complete this process properly because leaving an active GST registration unattended leads to accumulating late fees for non-filing of returns, potential suo motu cancellation by the department, and complications when applying for new registrations in the future.
If you need help with GST cancellation, ITC reversal computations, filing GSTR-10, or coordinating the cancellation with a company or LLP closure, our team of GST experts can handle the entire process for you.
Need help cancelling your GST registration? Let our experts handle the entire process.
Frequently Asked Questions
What is GST cancellation?
GST cancellation is the process of deactivating a GSTIN (GST Identification Number) when the registered person no longer needs to remain registered under GST. After cancellation, the taxpayer is no longer required to file GST returns or collect GST on sales. Cancellation can be initiated voluntarily by the taxpayer, by the tax officer on their own motion, or on the death of the sole proprietor.
What is the difference between GST cancellation and surrender?
GST cancellation and GST surrender refer to the same process. The term surrender is commonly used when the taxpayer voluntarily applies to cancel their GST registration (for example, when business is discontinued or turnover falls below the threshold). The term cancellation is a broader term that includes both voluntary applications and cancellations initiated by the tax department for defaults such as non-filing of returns.
Who is eligible to cancel GST registration?
A taxpayer can apply for voluntary cancellation if they have discontinued or closed their business, transferred the business (full transfer or amalgamation), changed the constitution (proprietorship to company, etc.), if the taxable turnover has fallen below the threshold limit, or if they no longer carry out activities that require GST registration. A person who voluntarily registered under GST must wait at least 1 year from the effective date of registration before applying for cancellation.
What is the threshold limit below which GST cancellation is allowed?
For suppliers of goods, the GST registration threshold is 40 lakh rupees annual turnover (20 lakh in special category states). For service providers, it is 20 lakh rupees (10 lakh in special category states). If your turnover falls below these limits and you do not wish to remain registered, you can apply for cancellation. Note that certain categories of persons are required to be registered regardless of turnover, such as inter-state suppliers and e-commerce operators.
What is GST REG-16?
GST REG-16 is the form used by a registered taxpayer to apply for voluntary cancellation or surrender of GST registration. It is filed on the GST portal and includes the reason for cancellation, the desired effective date, closing stock details, ITC reversal computation, and supporting documents. After submission, it is reviewed by the jurisdictional GST officer.
What happens after filing GST REG-16?
After filing GST REG-16, the jurisdictional GST officer reviews the application. If the officer is satisfied, they issue the cancellation order in GST REG-19 within 30 days. If additional information is needed, the officer issues a show cause notice in GST REG-18, and the applicant must respond within 7 working days using GST REG-24. If the officer rejects the application, they issue an order in GST REG-05.
Can the GST department cancel registration on its own?
Yes, the GST officer can initiate suo motu cancellation under Section 29(2) if the taxpayer has not filed returns for a continuous period of 6 months (for regular taxpayers) or 3 consecutive return periods (for composition dealers), if registration was obtained by fraud or misrepresentation, if the person has violated GST provisions, or if a composition dealer has not filed returns within 3 months from the due date. The officer issues GST REG-17 as a show cause notice before cancelling.
What is GSTR-10 and when is it required?
GSTR-10 is the final return that must be filed by every registered person whose GST registration has been cancelled or surrendered. It must be filed within 3 months from the date of the cancellation order or the date of cancellation, whichever is later. GSTR-10 contains details of closing stock of inputs, semi-finished goods, finished goods, and capital goods, the amount of ITC to be reversed, and the tax payable on the closing stock. It is a one-time return filed only once after cancellation.
What happens if GSTR-10 is not filed?
If GSTR-10 is not filed within the prescribed time, the tax officer will issue a notice in GSTR-3A directing the taxpayer to file the return within 15 days. Non-compliance can result in a best judgement assessment under Section 62. Additionally, a late fee of 200 rupees per day (100 CGST plus 100 SGST) is applicable, capped at 0.25 percent of the taxpayer turnover in the state or union territory. The pending GSTR-10 will also create complications if you apply for a new GST registration in the future.
How is ITC reversed on cancellation?
On cancellation, the taxpayer must reverse the Input Tax Credit (ITC) on the closing stock of inputs (raw materials), semi-finished goods, finished goods, and capital goods lying as on the date of cancellation. The reversal amount is the higher of the ITC originally claimed on such goods or the tax computed on the market value of such goods. For capital goods, the reversal is calculated proportionally based on the remaining useful life out of the total useful life of 5 years (60 months).
Is ITC reversal required on services?
The GST Act requires ITC reversal only on inputs, semi-finished goods, finished goods, and capital goods, not on input services consumed before the date of cancellation. However, if any service-related ITC was claimed for which the underlying service was not received or used by the date of cancellation, that portion would need to be reversed as it would not qualify as legitimate ITC.
Can a cancelled GST registration be revoked?
Yes, a cancelled GST registration can be revoked by applying in GST REG-21 within 30 days from the date of service of the cancellation order. If the cancellation was done by the tax officer (suo motu), the taxpayer must first file all pending returns, pay all outstanding taxes including interest and late fees, and then apply for revocation. If the revocation application is rejected, the taxpayer can appeal to the Appellate Authority within 3 months.
What is the deadline for applying for revocation?
The application for revocation in GST REG-21 must be filed within 30 days from the date of the cancellation order. The GST Council has periodically extended this deadline through amnesty schemes. Under recent amnesty windows, taxpayers whose registrations were cancelled on or before a specific date were given additional time to apply for revocation by filing all pending returns and paying dues.
Can I register for GST again after cancellation?
Yes, you can apply for fresh GST registration after cancellation. If the cancellation was voluntary, you can apply immediately for a new registration using the standard GST REG-01 form. However, if the cancellation was done by the department for default, any pending issues (like unfiled GSTR-10, outstanding demands, or penalty orders) must be resolved first. In some cases, the GST portal may flag the PAN for pending dues before allowing a new registration.
What is the effective date of GST cancellation?
The effective date of cancellation is decided by the GST officer while issuing the cancellation order in GST REG-19. It can be the date from which the taxpayer wanted the cancellation (as mentioned in REG-16), the date of the cancellation order, or any other date the officer deems appropriate. The taxpayer remains liable to file returns and pay tax up to the effective date of cancellation.
Is there any fee for GST cancellation?
There is no government fee charged for filing the GST cancellation application (GST REG-16). However, the taxpayer may need to pay any outstanding tax liabilities, interest, late fees on pending returns, and the output tax on closing stock or ITC reversal as part of the cancellation process. If you engage a GST professional for the filing, their service charges are separate.
Do I need to cancel GST separately for each state?
Yes, GST registration is state-specific. If you have GST registrations in multiple states, you need to file a separate GST REG-16 cancellation application for each GSTIN. Each state registration is treated independently, and the ITC reversal, closing stock computation, and GSTR-10 must be filed separately for each state registration.
What documents are required for GST cancellation?
The documents required include a copy of the board resolution or partner consent for cancellation (for companies and firms), details of closing stock as on the date of cancellation, computation of ITC reversal, details of the last filed GST return, bank account statement or cancelled cheque, and any supporting documents related to the reason for cancellation (such as dissolution deed, winding up order, or death certificate of proprietor).
How long does the GST cancellation process take?
The typical timeline is 15 to 30 days from the date of filing GST REG-16. If the officer does not raise any query, the order is usually issued within 30 days. If a show cause notice (REG-18) is issued, the additional time for response and processing extends the timeline by another 7 to 15 days. In practice, some applications may take longer if there are pending return filing issues or outstanding demands.
What happens to pending invoices after GST cancellation?
After the effective date of cancellation, you cannot issue GST-compliant tax invoices, collect GST on sales, or claim ITC on purchases. Any supply made after the cancellation date should not include GST. If you have advance payments received before cancellation for supplies to be made after cancellation, you should issue credit notes and refund the GST component or adjust it in the last return filed before cancellation.
Can a composition dealer cancel GST registration?
Yes, a composition dealer can cancel their GST registration by filing GST REG-16, just like regular taxpayers. The ITC reversal provisions apply differently since composition dealers do not claim ITC. However, if the composition dealer had previously been a regular taxpayer and still holds stock on which ITC was claimed during the regular period, that ITC must be reversed on cancellation.
What is Section 29 of the CGST Act?
Section 29 of the CGST Act 2017 governs the cancellation of GST registration. Section 29(1) allows voluntary cancellation on application by the registered person. Section 29(2) empowers the proper officer to cancel registration suo motu for reasons such as non-compliance, fraud, or non-filing of returns. Section 29(3) specifies that the cancellation does not affect the liability of the person to pay tax and other dues for the period prior to cancellation.
Is GST cancellation required when closing a company?
Yes, when closing or striking off a company, the GST registration must be cancelled as part of the overall closure process. The typical sequence is to first file all pending GST returns, then apply for GST cancellation, file GSTR-10, and then proceed with the company closure process with the Registrar of Companies. The company cannot be struck off while the GST registration remains active.
Is GST cancellation required when closing an LLP?
Yes, similar to companies, an LLP must cancel its GST registration before or during the LLP closure process. File all pending returns, apply for cancellation using GST REG-16, pay any outstanding dues, and file GSTR-10 after the cancellation order is issued. The LLP registration should not be struck off until GST compliance is complete.
What is the penalty for not cancelling GST registration when required?
There is no specific penalty for not cancelling GST registration. However, if you remain registered, you are required to file GST returns (GSTR-1 and GSTR-3B) every month or quarter. Non-filing of returns attracts a late fee of 50 rupees per day (25 CGST plus 25 SGST) for GSTR-3B and 50 rupees per day for GSTR-1, up to a maximum of 10,000 rupees per return. After 6 months of non-filing, the officer may cancel registration suo motu.
Can I cancel GST registration if I have outstanding tax dues?
You must pay all outstanding tax dues, interest, and penalties before the GST cancellation application can be processed. The cancellation application itself requires you to declare any tax payable, including ITC reversal on closing stock. Any pending demand from the department must also be resolved. The officer will not issue the cancellation order until all dues are cleared.
What changes after GST cancellation for my business?
After cancellation, you must stop collecting GST on sales, stop claiming ITC on purchases, file GSTR-10 within 3 months, update all invoices and billing systems to remove GST, inform customers and vendors about the change, close your GST-linked bank accounts if any, and ensure all business contracts are updated to reflect the non-GST status. Your GST registration can be re-obtained if needed in the future.
How to check GST cancellation status?
Log in to the GST portal at gst.gov.in and navigate to Services, then Registration, then Track Application Status. Enter your ARN (Application Reference Number) to check the current status of the cancellation application. The status will show whether the application is pending with the officer, approved, or rejected. You can also check the registration status by searching the GSTIN on the GST portal without logging in.
What is GST REG-17?
GST REG-17 is a show cause notice issued by the proper officer when they intend to cancel a taxpayer GST registration suo motu (on their own motion). The notice gives the taxpayer an opportunity to explain why their registration should not be cancelled. The taxpayer must respond within 7 working days. Common reasons for REG-17 include non-filing of returns for 6 months, fraud, contravention of GST provisions, or filing nil returns for 6 consecutive months without any business activity.
What is GST REG-18?
GST REG-18 is a show cause notice issued by the proper officer when a taxpayer files GST REG-16 for voluntary cancellation but the officer has queries or concerns. The notice asks the taxpayer to provide additional information or clarification within 7 working days. If the response is satisfactory, the officer proceeds with cancellation. If not, they may reject the application.
What is GST REG-19?
GST REG-19 is the order of cancellation of GST registration issued by the proper officer. This is the final order confirming that the GST registration has been cancelled from the specified effective date. After receiving REG-19, the taxpayer must file GSTR-10 within 3 months. The REG-19 order is downloadable from the GST portal.
Can I cancel GST registration for a specific branch or additional place of business?
You cannot cancel GST registration for a specific branch while keeping the main registration active. However, you can amend your registration to remove an additional place of business using the GST REG-14 amendment form. If you want to close a branch but maintain GST registration for the main business premises, file an amendment to remove that address from your registration certificate.
What is the impact of GST cancellation on ongoing contracts?
After cancellation, you cannot charge or collect GST on any supply made after the effective date. For ongoing contracts with GST-inclusive pricing, you need to renegotiate the price since GST is no longer applicable. Credit notes should be issued for any advance payments received on which GST was charged but the supply will be made after cancellation. Contractual obligations regarding invoicing and tax compliance should be clearly communicated to all parties.
What is the GST amnesty scheme for revocation?
The GST Council periodically announces amnesty schemes that allow taxpayers whose registrations were cancelled due to non-filing of returns to apply for revocation beyond the standard 30-day window. Under amnesty schemes, taxpayers are required to file all pending returns with applicable late fees and taxes, and then apply for revocation within the extended deadline announced by the government. These schemes are announced through CBIC notifications.
Can a deceased proprietor GST registration be cancelled?
Yes, in the case of death of a sole proprietor, the legal heir or authorised representative can apply for cancellation of the GST registration. The application in GST REG-16 should state the reason as death of the proprietor and upload a death certificate. All returns up to the date of death must be filed, and GSTR-10 must be filed after the cancellation order is issued. If the business is taken over by a legal heir, they need to apply for a fresh GST registration.
Do I need a CA to cancel GST registration?
A CA is not mandatory for GST cancellation. You can file the application yourself on the GST portal. However, engaging a professional is recommended if there are complex ITC reversal calculations, pending returns, outstanding demands, or if the cancellation involves a company closure or restructuring. A CA can ensure accurate computation of final tax liability and proper filing of GSTR-10.
What is the difference between cancellation and suspension of GST?
When a taxpayer files GST REG-16 for cancellation, the registration is immediately suspended from the date of application until the final order is issued. During suspension, the taxpayer cannot make taxable supplies, issue tax invoices, or file regular returns (though pending returns for prior periods must still be filed). Cancellation is the final action when the officer approves the application. Suspension is the interim status between application and final order.
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