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Reasons for Cancellation of Registration under GST

The registration granted under GST can be cancelled for specified reasons. The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of death of registered person, the legal heirs can apply for cancellation. In case the registration has been cancelled by the department there is a provision for revocation of the cancellation. On cancellation of the registration the person has to file a return which is called the final return.

The registration can be cancelled for the following reasons:

 a) A person registered under any of the existing laws, but who is not liable to be registered under the GST Act;

 b) 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;

 c) There is any change in the constitution of the business;

 d) The taxable person (other than the person who has voluntarily taken registration under sub-section (3) of section 25 of the CGST Act, 2017) is no longer liable to be registered;

 e) A registered person has contravened such provisions of the Act or the rules made thereunder;

 f) A person paying tax under Composition levy has not furnished returns for three consecutive tax periods;

 g) Any registered person, other than a person paying tax under Composition levy has not furnished returns for a continuous period of six months;

 h) Any person who has taken voluntary registration under subsection (3) of section 25 has not commenced business within six months from the date of registration;

 i) Registration has been obtained by means of fraud, willful misstatement or suppression of facts.


Source: CBIC

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