Rule 22 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 22 sets out the procedure for cancelling a registration under section 29. The proper officer issues a show cause notice in FORM GST REG-17, the registered person replies in FORM GST REG-18, and the officer either cancels by an order in FORM GST REG-19 or drops the proceedings by an order in FORM GST REG-20.
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.
Where the proper officer has reasons to believe that registration is liable to be cancelled under section 29, he issues a notice in FORM GST REG-17 requiring the person to show cause within a period of seven working days from the date of service. The reply is in FORM GST REG-18. If cancellation follows, the order is in FORM GST REG-19, within thirty days of the application or the reply. If the reply is satisfactory, the proceedings are dropped by an order in FORM GST REG-20.
The section behind the rule
Rule 22 gives effect to section 29 of the CGST Act, 2017. Its sub-rule (1) opens "Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29". The grounds are in section 29(2) (see section 29(2): the grounds for cancellation by an officer) and the cases listed in rule 21 (see rules 20 and 21 of the CGST Rules, 2017). If you have received a notice in FORM GST REG-17, our GST cancellation and revocation service can prepare the reply.
Sub-rule (1): the show cause notice
"Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled."
The word is "shall": the officer who has the reasons to believe must issue the notice before cancelling. The period is seven working days from service, not from the date of the notice.
Sub-rule (2): the reply
"The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM GST REG-18 within the period specified in the said sub-rule", that is, the seven working days.
Sub-rule (3): the order of cancellation
Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered, or where his registration is liable to be cancelled, "the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1) or under sub-rule (2A) of rule 21A, cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section (5) of section 29".
Four points come out of that sentence:
- Two starting points for the thirty days. The date of the application under rule 20, or, as the case may be, the date of the reply to the show cause notice. The words "or under sub-rule (2A) of rule 21A" were inserted by Notification No. 94/2020 - CT dated 22.12.2020; they bring in the notice sent when registration is suspended on the grounds in rule 21A(2A).
- The effective date is the officer's. Cancellation takes effect "from a date to be determined by him".
- Payment. The person is directed to pay arrears of tax, interest or penalty, "including the amount liable to be paid under sub-section (5) of section 29". See section 29(5): what you pay when registration is cancelled.
- A footnote on the print. The footnote records that the words "sub-rule (1) of" before "rule 20" were omitted by Notification No. 7/2017 - CT dated 27.06.2017, with effect from 22.06.2017.
Sub-rule (4): dropping the proceedings
Where the reply furnished under sub-rule (2), "or in response to the notice issued under sub-rule (2A) of rule 21A", is found to be satisfactory, "the proper officer shall drop the proceedings and pass an order in FORM GST REG-20". The bracketed words were inserted by Notification No. 94/2020 - CT dated 22.12.2020.
Proviso (inserted by Notification No. 39/2018 - CT dated 04.09.2018). Where the person, "instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29", furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer "shall drop the proceedings and pass an order in FORM GST REG-20". Read section 29(2)(b) and (c) in the Act for the grounds the proviso refers to.
Sub-rule (5): legal heirs
"The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself." So where a proprietor dies, an application is treated as if he had submitted it himself, and sub-rule (3) applies.
Who does what, by when
| Who | What | Form | Period | Sub-rule |
|---|---|---|---|---|
| Proper officer | Issues notice requiring the person to show cause why registration shall not be cancelled | FORM GST REG-17 | Show cause within seven working days from the date of service | (1) |
| Registered person | Furnishes reply | FORM GST REG-18 | Within the period in sub-rule (1) | (2) |
| Proper officer | Cancels, with effect from a date determined by him; directs payment of arrears | FORM GST REG-19 | Within thirty days from the application under rule 20 or the date of the reply | (3) |
| Proper officer | Drops proceedings where reply is satisfactory | FORM GST REG-20 | No period printed | (4) |
| Proper officer | Drops proceedings where pending returns are furnished and dues paid with interest and late fee, instead of replying (clauses (b) and (c) of section 29(2)) | FORM GST REG-20 | No period printed | (4) proviso |
| Legal heirs of a deceased proprietor | Sub-rule (3) applies as if the proprietor had applied | As in sub-rule (3) | As in sub-rule (3) | (5) |
A worked example
Orchid Polymers, an invented partnership, receives a notice in FORM GST REG-17. The proper officer has reasons to believe the registration is liable to be cancelled under section 29. The notice requires the firm to show cause within seven working days from the date of service. The firm replies in FORM GST REG-18 within that period.
The officer is satisfied with the reply: he drops the proceedings and passes an order in FORM GST REG-20 (sub-rule (4)). Suppose instead he is not satisfied. He must issue the order of cancellation in FORM GST REG-19 within thirty days from the date of the reply, with effect from a date he determines, and direct the firm to pay arrears of tax, interest or penalty, including any amount under section 29(5).
A second case: the ground alleged is under clause (b) or (c) of section 29(2). The firm, instead of replying, furnishes all pending returns and pays the tax dues with applicable interest and late fee. Under the proviso, the officer drops the proceedings and passes the order in FORM GST REG-20.
Points to watch
- Seven working days from service. Track the date the notice was served, not the date printed on it.
- The reply Form. FORM GST REG-18 is the Form rule 22(2) names.
- Thirty days for the officer. The period for the order runs from the application or the reply.
- The proviso is limited. It applies where the allegation is under clause (b) or (c) of section 29(2).
- After cancellation. Revocation is under rule 23; see rule 23 of the CGST Rules, 2017. Suspension pending proceedings is in rule 21A; see rule 21A.
Need help replying to a cancellation notice?
Seven working days is not long. We read the notice, match it to the ground in section 29 or rule 21, prepare the reply in FORM GST REG-18 and, where the proviso fits, plan the pending returns and payment that can close the matter. See our GST cancellation and revocation service.
Key takeaways
- Rule 22(1): notice in FORM GST REG-17 with show cause within seven working days from the date of service.
- Rule 22(2): reply in FORM GST REG-18 within the same period.
- Rule 22(3): order in FORM GST REG-19 within thirty days from the application under rule 20 or the date of the reply; effective from a date the officer determines.
- Rule 22(4): satisfactory reply means dropping in FORM GST REG-20; the proviso covers pending returns and dues under section 29(2)(b) and (c).
- Rule 22(5): legal heirs of a deceased proprietor are treated as if the proprietor had applied.
Read next
- Rules 20 and 21 of the CGST Rules, 2017: application for cancellation and the cases for cancellation
- Rule 23 of the CGST Rules, 2017: revocation of cancellation of registration
- Rule 21A: suspension of registration and what it stops
- Section 29(5): what you pay when registration is cancelled
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.