📌 Key Takeaway: Learn the voluntary GST cancellation process (REG-16), resolving suo-motu cancellations for non-filing, and filing Form REG-21 revocation within 90 days.
Why GST Registrations Get Cancelled
A GST registration can be cancelled either voluntarily by the taxpayer (upon closure of business, change in constitution, or turnover dropping below threshold) or suo motu by the GST Officer under Section 29(2) due to statutory non-compliance—most commonly continuous non-filing of returns for 6 months (or 2 quarters for composition dealers).
Voluntary Cancellation Procedure (Form GST REG-16)
When closing business operations, file Form GST REG-16 on the portal within 30 days of closure. Crucial requirements include:
- Determining closing stock of raw materials, semi-finished goods, and capital assets.
- Reversing ITC or paying output tax on closing stock as per Section 29(5).
- Filing the mandatory Final Return (Form GSTR-10) within 3 months of cancellation order.
Suo Motu Cancellation and the Revocation Window (Form GST REG-21)
If the officer cancels your GSTIN for non-filing, you have 90 calendar days (extendable up to 180 days by the Joint/Additional Commissioner) from the service of cancellation order to file a revocation application in Form GST REG-21.
Step-by-Step Revocation Protocol
- File all pending GSTR-1 and GSTR-3B returns from the date of default up to the cancellation date.
- Pay all outstanding tax liabilities, late fees, and statutory interest in cash.
- Navigate to Services > Registration > Application for Revocation of Cancelled Registration (REG-21).
- Submit detailed reason for non-compliance with proof of tax clearance and bank statements.
- The officer will review and issue Form GST REG-22 restoring your active GSTIN within 30 days.