Whether you’ve closed your business, fallen below the turnover threshold, or switched to a different structure — there may come a time when you need to cancel your GST registration.

Cancelling your GSTIN officially informs the government that your business is no longer required to file returns or collect GST.
But it must be done carefully — otherwise, penalties, pending liabilities, or ITC reversals may follow.

Let’s go step-by-step through the GST registration cancellation process, eligibility, documentation, and what happens afterward.

When Can GST Registration Be Cancelled?

1️⃣ Voluntary Cancellation by Taxpayer

You can apply for cancellation if:

• Your business is closed or sold.

• Your turnover drops below ₹20 lakh (₹10 lakh in special category states).

• You’ve switched to Composition Scheme or another business model.

• You registered by mistake or don’t require GST anymore (e.g., freelancer without clients in India).

2️⃣ Cancellation by GST Officer

Your registration may be cancelled by the department if:

• You haven’t filed returns for 6 months or more.

• ITC or invoices appear fraudulent.

• You issued invoices without actual supplies.

How to Apply for GST Cancellation (Form REG-16)

Step 1: Log in to GST Portal

Go to gst.gov.in → Services → Registration → Application for Cancellation of Registration.

Step 2: Fill in Form REG-16

Provide:

• Reason for cancellation

• Date of closure

• Stock and liability details

• Tax payable on ITC reversal

Step 3: Submit and Verify

Use Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) for submission.

Step 4: Receive Acknowledgment

Once approved, you’ll get a cancellation order (Form REG-19).

What Happens After GST Cancellation?

• You can no longer issue tax invoices or collect GST.

• Unused Input Tax Credit (ITC) on stock must be reversed or paid back.

• Pending returns (like final GSTR-10) must still be filed.

• The GSTIN remains visible as “Cancelled” for transparency.

Revocation of GST Cancellation

If your GSTIN was cancelled by an officer (e.g., for non-filing), you can apply for revocation within 30 days by:
1️⃣ Filing all pending returns.
2️⃣ Paying due tax and late fees.
3️⃣ Submitting Form REG-21 for revocation request.

Conclusion

GST registration cancellation is not the end — it’s a compliance step that must be handled with the same accuracy as registration.
Make sure your books are closed, ITC reversed, and final returns filed to avoid post-cancellation liabilities.

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