To cancel GST registration voluntarily, file Form REG-16 on gst.gov.in (Services → Registration → Application for Cancellation). Reverse the ITC on closing stock, then file the GSTR-10 final return within 3 months of the cancellation date or order. If an officer cancelled your GSTIN (Form REG-19), you can apply for revocation via Form REG-21 within 30 days after clearing all pending returns and dues.
Voluntary vs Suo-Motu (Officer) Cancellation
GST registration can be cancelled either on your own application or suo motu by the proper officer under Section 29 of the CGST Act. The route decides which forms apply and whether revocation is possible.
| Factor | Voluntary | Suo-Motu / Officer |
|---|---|---|
| Who initiates | Taxpayer | Proper officer |
| Common reason | Business closed, turnover below threshold, change of constitution | Non-filing of returns, fraud, non-existent business |
| Form used | REG-16 | REG-17 SCN → REG-19 |
| Effective date | Date you choose | Date in the officer's order |
| Revocation possible? | No | Yes · REG-21 in 30 days |
| GSTR-10 required? | Yes · 3 months | Yes · 3 months |
A proper officer may cancel suo motu where a normal taxpayer has not filed returns for a continuous six months (three consecutive tax periods for a composition taxpayer). Verify current triggers on gst.gov.in.
Missing the GSTR-10 final return draws a late fee of ₹200/day (₹100 CGST + ₹100 SGST) capped at ₹10,000, and the portal can block your PAN from taking fresh GST registration until it is filed. Clear all pending GSTR-1 and GSTR-3B first.
How to Cancel GST Registration Online
The full voluntary cancellation journey on the GST portal, from application to final return.
- 1Apply REG-16Reason + effective date
- 2Reverse ITCOn closing stock
- 3Officer orderREG-19 issued
- 4File GSTR-10Within 3 months
- Log in to gst.gov.in → Services → Registration → Application for Cancellation of Registration
- Select the reason (business discontinued, turnover below threshold, change in constitution, transfer/merger)
- Enter the effective date of cancellation and details of closing stock
- Compute and declare ITC to be reversed on inputs, WIP, finished goods and capital goods
- Submit with DSC or EVC and note the ARN generated
- On the officer issuing Form REG-19, file the GSTR-10 final return within 3 months
Closing your business or below the threshold? Get your cancellation and GSTR-10 filed correctly.
Talk to a GST Expert →ITC Reversal on Cancellation
On cancellation you must reverse the input tax credit attributable to stock held on the effective date. The higher of the ITC involved or the output tax on such stock is added to your liability and reported in GSTR-10.
| Type of Closing Stock | ITC Reversal | Basis |
|---|---|---|
| Inputs (raw materials, consumables) | Full | ITC availed on stock held on cancellation date |
| Semi-finished / WIP goods | Full | ITC on inputs contained, proportionate |
| Finished goods | Full | ITC on inputs used, by tax rate |
| Capital goods | Proportionate | Remaining useful life (60 months from purchase) |
Pay the higher of the ITC involved or output tax on the stock. If the electronic credit ledger is short, the balance is paid in cash.
For capital goods, reverse ITC on the pro-rata basis of the remaining useful life — capital goods are treated as having a life of five years (60 months) from the date of the invoice.
GSTR-10 — Final Return After Cancellation
Every taxpayer whose registration is cancelled or surrendered must file GSTR-10, a one-time final return, within 3 months of the cancellation date or the date of the cancellation order, whichever is later.
- GSTR-10 is a one-time return, not monthly or quarterly
- File all pending GSTR-1 and GSTR-3B up to the cancellation date first
- Late fee: ₹200/day (₹100 CGST + ₹100 SGST), capped at ₹10,000 per return
- Once filed, the GSTIN is permanently deactivated
Revocation of a Cancelled Registration
Revocation applies only where an officer cancelled the GSTIN (not a voluntary surrender). Apply within 30 days of the cancellation order; the officer may extend this by up to 30 + 30 days.
- 1File REG-21Within 30 days of order
- 2Clear duesAll returns + tax paid
- 3Officer reviewsApproves via REG-22
A revocation application in Form REG-21 is rejected if pending returns and dues are not cleared first. If the officer is not satisfied, a show-cause notice is issued and you get an opportunity to be heard before final rejection.
- GST portal: gst.gov.in
- CBIC: cbic-gst.gov.in
- Cancellation & revocation: Sections 29-30, CGST Act 2017; Rules 20-23
- Final return: GSTR-10 under Section 45, CGST Act 2017
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.