Rules 20 and 21 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 20 tells a registered person how to ask for cancellation of his own registration: an application in FORM GST REG-16 within thirty days of the event that warrants it. Rule 21 lists the cases in which registration "is liable to be cancelled" by the proper officer, from not conducting business at the declared place to not filing returns for a continuous period.
This article follows the Central Goods and Services Tax Rules, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked.
A registered person seeking cancellation under section 29(1) applies electronically in FORM GST REG-16 within a period of thirty days of the occurrence of the event warranting the cancellation, with the stock and liability details the rule lists. Rule 21 states, in clauses (a) to (i), the cases in which the registration "is liable to be cancelled", including no returns for a continuous period of six months (monthly filers) or two tax periods (quarterly filers).
The section behind the rules
Both rules belong to section 29 of the CGST Act, 2017 on cancellation or suspension of registration. Rule 20 is stated to be for a person "seeking cancellation of his registration under sub-section (1) of section 29". Rule 21 names the cases that supply the "reasons to believe" on which a proper officer acts under section 29; see section 29(2): the grounds for cancellation by an officer and our post on section 29 of the CGST Act, 2017. If you need to apply for cancellation or have received a notice, our GST cancellation and revocation service can act on it.
Rule 20: application for cancellation
Who. "A registered person, other than a person to whom a registration has been granted under rule 12 or a person to whom a Unique Identity Number has been granted under rule 17". Tax deductors and collectors (see rule 12) and holders of a Unique Identity Number (see rule 17) are outside rule 20.
What. The person "shall electronically submit an application in FORM GST REG-16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability". He "may furnish, along with the application, relevant documents in support thereof".
Where and when. "At the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner".
The proviso. The compilation shows the proviso to rule 20 as omitted ("[****]"); the footnote records that it was omitted by Notification No. 03/2018 - CT dated 23.01.2018. What it used to say is not law and is not used here.
What follows. Rule 21A deems the registration suspended from the date of the application or the date from which cancellation is sought, whichever is later, pending the completion of the proceedings under rule 22: see rule 21A: suspension of registration and what it stops. The order itself is in rule 22: see rule 22 of the CGST Rules, 2017.
Rule 21: when registration is liable to be cancelled
Rule 21 opens: "The registration granted to a person is liable to be cancelled, if the said person, -". The words are "liable to be cancelled": the rule states the cases; the cancellation is by the proper officer through the procedure in rule 22.
| Clause | Case |
|---|---|
| (a) | does not conduct any business from the declared place of business |
| (b) | issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder |
| (c) | violates the provisions of section 171 of the Act or the rules made thereunder |
| (d) | violates the provision of rule 10A |
| (e) | avails input tax credit in violation of the provisions of section 16 of the Act or the rules made thereunder |
| (f) | furnishes the details of outward supplies in FORM GSTR-1 (as amended in FORM GSTR-1A, if any) under section 37 for one or more tax periods which is in excess of the outward supplies declared in his valid return under section 39 for the said tax periods |
| (g) | violates the provision of rule 86B |
| (ga) | violates the provisions of third or fourth proviso to sub-rule (1) of rule 23 |
| (h) | being a registered person required to file return under section 39(1) for each month or part thereof, has not furnished returns for a continuous period of six months |
| (i) | being a registered person required to file return under the proviso to section 39(1) for each quarter or part thereof, has not furnished returns for a continuous period of two tax periods |
Notes on the print and the cross-references:
- The footnotes record that clause (b) was substituted by Notification No. 07/2017 - CT dated 27.06.2017 with effect from 22.06.2017, with the words "or both" inserted by Notification No. 94/2020 - CT dated 22.12.2020; clause (d) was inserted by Notification No. 31/2019 - CT dated 28.06.2019; clauses (e) to (g) by Notification No. 94/2020 - CT dated 22.12.2020; clause (ga) and the words on FORM GSTR-1A by Notification No. 12/2024 - CT dated 10.07.2024; and clauses (h) and (i) by Notification No. 19/2022 - CT dated 28.09.2022, with effect from 01.10.2022.
- Clause (d) refers to rule 10A, on furnishing bank account details: see rule 10A. Clause (g) refers to rule 86B: see rule 86B: the one per cent cash payment restriction. Clause (ga) refers to the third and fourth provisos to rule 23(1), which are covered in the article on rule 23.
- Clause (c) refers to section 171 of the Act. This article does not explain that section; read it in the Act.
- Clauses (h) and (i) depend on the filing frequency of the person. A monthly filer is within clause (h); a quarterly filer is within clause (i).
Who does what, by when
| Who | What | Form | When | Rule |
|---|---|---|---|---|
| Registered person (other than under rule 12 or rule 17) | Applies for cancellation with stock, capital goods, liability and payment details | FORM GST REG-16 | Within thirty days of the occurrence of the event warranting cancellation | 20 |
| Registered person | May furnish relevant documents in support | With the application | With the application | 20 |
| Proper officer | Acts on the cases in clauses (a) to (i); procedure in rule 22 | See rule 22 | See rule 22 | 21 |
A worked example
Ashoka Furniture Works, an invented proprietorship, closes its business on 1 September. It is a registered person, not under rule 12 and not holding a Unique Identity Number, so rule 20 applies. It must file FORM GST REG-16 within thirty days of 1 September, the event warranting the cancellation, giving the details of inputs and capital goods held in stock on the date from which cancellation is sought, the liability on them and any payment made against it.
Now compare Pine Hill Traders, an invented firm that is required to file returns monthly. It stops filing and does not furnish any return for six months running. Even if it never applies under rule 20, clause (h) of rule 21 says its registration is liable to be cancelled, and the proper officer follows rule 22. If Pine Hill were a quarterly filer, the same clause would be (i), with a continuous period of two tax periods.
Points to watch
- Thirty days runs from the event, not from the date on which you decide to apply.
- "Liable to be cancelled" is not "cancelled". Rule 21 lists the cases; the order comes after the procedure in rule 22.
- Clauses (h) and (i) are separate for monthly and quarterly filers, with different periods.
- Clauses (e) to (g) all depend on other rules or sections (section 16, FORM GSTR-1 against section 39 returns, and rule 86B).
- Revocation. A cancelled registration may be revived under rule 23: see section 30: revocation application, timeline and extension.
Need help with cancellation?
A late FORM GST REG-16 or an unanswered notice can leave liabilities running on a registration you no longer use. We prepare the cancellation application with the stock and liability details, and we help you respond if a ground in rule 21 is alleged against you. See our GST cancellation and revocation service.
Key takeaways
- Rule 20: FORM GST REG-16, within thirty days of the event warranting cancellation, with stock, capital goods, liability and payment details.
- Persons registered under rule 12 and holders of a Unique Identity Number under rule 17 are outside rule 20.
- Rule 21 lists clauses (a) to (i), including (ga), as cases where registration is liable to be cancelled.
- Clause (h): monthly return not furnished for a continuous period of six months; clause (i): quarterly return not furnished for a continuous period of two tax periods.
- Rule 21A suspension and rule 22 procedure follow.
Read next
- Rule 22 of the CGST Rules, 2017: cancellation of registration, notice, reply and order
- Rule 23 of the CGST Rules, 2017: revocation of cancellation of registration
- Rule 21A: suspension of registration and what it stops
- Section 29(2): the grounds for cancellation by an officer
Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.