GST Cancellation & Revocation

Cancellation of GST registration means that your GST number is no longer active and you are not allowed to collect GST or file GST returns anymore. It’s like officially closing your GST account with the government.

This usually happens when:

• You stop doing business
• Your business is transferred or merged
• You don’t need GST anymore (like your turnover is below the limit)
• You break the GST rules, and the government cancels it

After cancellation, you must stop issuing GST invoices, and you won’t be able to claim input tax credit.

GST registration can be cancelled by different parties depending on the situation.

1. Cancellation by the Business Owner (Voluntary Cancellation)

If you're a registered taxpayer and no longer require GST registration, you can apply for cancellation voluntarily. Common reasons include:

• Closure of business
• Turnover has fallen below the GST threshold
• Change in business structure (e.g., sole proprietorship to partnership)

2. Cancellation by the GST Department

The GST department can cancel your registration on its own (suo moto) under the following conditions:

• Failure to file GST returns for a continuous period
• Registration obtained using false information
• Violation of GST provisions

3. Cancellation by Legal Heirs (In Case of Death)

If a sole proprietor passes away, the legal heirs or family members can apply to cancel the GST registration of the deceased.

Forms You May Need During the Cancellation Process

To successfully cancel your GST registration, certain forms must be submitted depending on who initiates the cancellation and why.

Certain types of registered persons are not allowed to cancel their GST registration:

• TDS/TCS Deductors: People registered only to deduct/collect tax can't cancel registration.
• UIN Holders: Foreign embassies or UN bodies with a Unique ID Number (UIN) cannot apply for cancellation. They get UINs just to claim refunds.

There are several situations where GST registration may need to be cancelled. This section lists the main reasons why a taxpayer or the GST department might decide to cancel it.

1. When a Business Owner Requests Cancellation

• Business is closed
• Business is sold or merged
• Business type changed
• Turnover below the GST limit
• Wants to cancel registration for any personal/business reason.

2. When the GST Officer Cancels

• Not filing GST returns (6 months for regular, 3 for composition)
• Got GST by giving false information
• Breaking GST laws
• Doing fake or illegal business
• Not started a business after getting GST
• Claiming wrong Input Tax Credit (ITC)

Time Limit for Cancellation

Learn about when you need to apply for cancellation and how much time you have to do it.

• Voluntary: You can apply for cancellation anytime after registration if you're no longer required to be under GST.
• By Officer: Cancellation starts automatically if you don't file returns for 6 months (or 3 months for composition).
• Important: Apply for cancellation within 30 days of stopping business or for any other reason.

Cancelling GST registration brings certain changes and responsibilities for the business.

• Stop Charging GST: You can’t charge GST on your bills after cancellation. Update your invoices accordingly.
• No Input Tax Credit: You can't claim credit on purchases after cancellation. You may also have to pay tax equal to the ITC on any remaining stock.
• File Final Return: You must file a final return (Form GSTR-10) within 3 months of cancellation.
• Keep Records: You must keep all business records for 6 years after cancellation for audits or inspections.
• Legal Trouble: If you don't file the final return or pay taxes due, you may get penalties or face legal issues.
• Business Impact: Your operations may be affected. To restart GST, you must apply again and go through checks.
• Refunds: If you paid extra GST, you can get a refund—apply within the time limit.
• PAN-Wide Effect: If your business has GST in many states or verticals, cancellation in one may affect all with the same PAN.

Follow these easy steps to apply for cancellation through the GST portal.

1. Log in to gst.gov.in
2. Go to Services > Registration > Application for Cancellation
3. Enter Details like:

• Reason for cancellation
• Date of cancellation
• Details of remaining stock and ITC

4. Pay Dues: Make sure all returns are filed and dues are cleared with the cancellation effective date.
5. Submit Application using Digital Signature Certificate (DSC) or OTP (EVC).
6. Get ARN: You’ll receive an Acknowledgement Reference Number to track your application.
7. Officer Review: GST officer may ask for more info—reply if needed.
8. Cancellation Order: If everything is okay, you’ll get Form GST REG-19 with the cancellation date.

Rule 23 of the GST Rules allows taxpayers to request the restoration of their cancelled GST registration.

Form GST REG-21: Application for Reversal of GST Cancellation

If a GST officer cancels your registration, you can request to get it back by filing Form GST REG-21. This form must be submitted within 30 days of the date you received the cancellation order.

If your GST registration was cancelled because you did not file your GST returns, you can file Form REG-21 only after submitting all the pending returns and paying any interest or late fees due.

Follow the steps below to file GST REG-21 for revocation of GST registration:

Step 1: Log in to the GST Portal

Go to the GST portal, log in with your credentials, and go to ‘Services’ > ‘Registration’ > ‘Application for Revocation of GST Registration Cancellation’.

Step 2: Fill in the Details

Enter the required details and mention the reason why your GST registration should be restored.

You can also attach any supporting documents, if needed.

Once all the information is filled in, tick the verification checkbox, choose the authorised signatory and place, and move to the next step.

Step 3: Submit the Application

File Form GST REG-21 using either your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Once submitted, you will get a confirmation message saying that your application has been successfully filed.

Form GST REG-23: Notice for Cancellation of Revocation Application

This form is issued by the GST officer when they are not satisfied with the revocation application submitted by the taxpayer whose GST registration was cancelled. It acts as a show-cause notice, giving the taxpayer an opportunity to explain why the revocation should not be rejected.

• Purpose: To notify the taxpayer that the application for revocation of cancellation is being considered for rejection.
• Response Time: The taxpayer must respond within 7 working days from the date of issue.

Form GST REG-24: Reply to Show-Cause Notice (REG-23)

If a taxpayer receives a notice in Form REG-23, they must submit their reply through Form REG-24. This form allows the taxpayer to present their justification, provide additional documents, and explain why the revocation application should be accepted.

• Purpose: To reply to the officer’s concerns raised in REG-23.
• Deadline: Must be filed within 7 working days from the date of the REG-23 notice.

Last Update: The government had allowed a one-time extension under Notification No. 03/2023 for taxpayers whose GST registration was cancelled on or before 31st Dec 2022. They could apply for revocation until 30th June 2023 after filing pending returns and clearing dues.

Who Else Can Apply Under This Extension?

The following taxpayers can also apply for revocation under this extended window:

• Those whose appeal against cancellation was rejected due to late filing.
• Those whose appeal against the rejection of the revocation application was dismissed due to time limits.

CBIC Circular on Extended Revocation Period

The CBIC issued Circular No. 158/14/2021-GST on 6th September 2021 to explain the earlier extension given under Notification No. 34/2021 dated 29th August 2021.

• This allowed taxpayers whose revocation deadline expired between 1st March 2020 and 31st August 2021 to apply for revocation by 30th September 2021.
• Many taxpayers were confused about whether they could apply again if their previous application was rejected, in process, or an appeal.

The circular clarified that the relief applies to all such cases, regardless of whether the revocation application was:

• Already applied
• Under review
• Rejected
• With appellate authority

Revocation of GST registration means reactivating your GST number after it has been cancelled by the tax department. Follow the steps below to apply:

Step 1: Check Eligibility

Make sure that the GST registration was cancelled by the GST officer (not voluntarily by you) and that you are applying within 90 or 180 days from the date of the cancellation order.

Step 2: Review the Cancellation Order

Go through the reasons mentioned in the cancellation order carefully and identify the compliance issues that led to the cancellation.

Step 3: Fix Compliance Issues

Before applying, file all pending GST returns and clear any outstanding dues, including applicable interest, late fees, and penalties.

Step 4: Log in to the GST Portal

Visit the GST Portal and log in using your user ID and password. Go to ‘Services > Registration > Application for Revocation of Cancellation’.

Step 5: Fill Form GST REG-21

Complete the application in Form GST REG-21, clearly stating the reason for revocation, and attach supporting documents, such as return filing confirmations and payment receipts.

Step 6: Upload Required Documents

Ensure all documents are properly formatted, clear, and relevant. Attach them to support your revocation request.

Step 7: Submit the Application

Use your Digital Signature Certificate (DSC) or e-Signature (EVC) to complete the application submission process.

Step 8: Track the Application

After submission, keep checking the application status on the GST portal. If you receive any notices or queries from the GST officer, respond quickly.

Step 9: Outcome – Approval or Rejection

If the officer is satisfied, your GST registration will be restored. If it’s rejected, the reasons for rejection will be shared, and you will have the option to appeal the decision if needed.

The process to revoke a cancelled GST registration generally follows a set timeline. Here’s how it usually works:

1. Application Submission

After receiving the cancellation order, the taxpayer has up to 90 days to apply for revocation by filing Form GST REG-21.

2. Officer’s Processing Time

Once the application is filed, the GST officer has 30 days to review it and either:

• Approve it by issuing Form GST REG-22, or
• Reject it using Form GST REG-05

3. Responding to Show Cause Notice

If the officer is not satisfied with the application and issues a show cause notice (Form GST REG-23), the taxpayer must reply within 7 working days using Form GST REG-24.

4. Final Decision After Reply

Once the officer receives the response, they will assess the reply and take a final decision within the next 30 days.

5. Overall Timeline

In total, the revocation process may take around 2 to 3 months, depending on the following:

• How quickly the application is submitted
• Timely response to any notices from the GST officer
• Complexity of the case, or if additional clarifications are needed

If all actions are completed on time and there are no complications, the revocation process can be completed smoothly within this period.

Cancelling or revoking your GST registration on the GST portal does not involve any government charges. However, if you take help from a tax consultant or a CA, they may charge a professional fee based on the service provided.

A GST revocation letter is written by the taxpayer to request the reinstatement of their cancelled GST registration. Below is a sample format to help you draft a proper revocation request letter.

GST Revocation Letter Sample Format Page-1

GST Revocation Letter Sample Format Page-2