How to Cancel and Revive Your GST Registration (Suo Moto vs Voluntary)

Understanding GST Registration Cancellation and Revival – Suo Moto vs Voluntary

Under India’s Goods and Services Tax (GST) system, registration signifies the legal recognition of a taxpayer. However, businesses may need to cancel or revive their GST registration for various reasons—business closure, turnover reduction, or departmental action.

Understanding how GST registration cancellation and revival work—whether initiated voluntarily or suo moto by the department—is essential for maintaining compliance and avoiding penalties.

This article by Advocate Tabish Ahmad, a GST lawyer in Patna, Bihar, explains the step-by-step process, applicable legal provisions, and forms under the CGST Act and Rules for both cancellation and revival.

What is GST Registration Cancellation?

GST registration cancellation refers to the termination of a taxpayer’s registration, rendering the business ineligible to collect or remit GST.

Voluntary vs Suo Moto Cancellation

• Voluntary Cancellation: When a taxpayer applies for cancellation due to business closure, change in constitution, or turnover falling below the registration threshold.
• Suo Moto Cancellation: When the Proper Officer cancels the registration on grounds such as non-filing of returns, fraud, or violation of provisions under Rule 21 of the CGST Rules, 2017.

Common Reasons for Cancellation

• Discontinuance or closure of business
• Change in business structure or ownership
• Business transferred, amalgamated, or merged
• Turnover below ₹40 lakh (goods) or ₹20 lakh (services) threshold
• Non-filing of returns for more than six months
• Misuse of GSTIN or fraudulent activities

Step-by-Step Process to Cancel GST Registration

Using GST Portal (Form REG-16)

To cancel your GST registration voluntarily, follow these steps:

1️⃣ Log in to the GST portal.
2️⃣ Go to Services → Registration → Application for Cancellation.
3️⃣ Choose the reason for cancellation (e.g., discontinued business).
4️⃣ File Form REG-16 with details such as stock held, liabilities, and input tax credit reversal.
5️⃣ Submit digitally signed application.

After submission, the officer verifies the details and issues an order in Form REG-19 within 30 days, approving the cancellation.

Documents Required and Timelines

• Proof of business closure (if applicable)
• PAN and Aadhaar copies
• GSTIN of the business
• Final return in Form GSTR-10 (to be filed within 3 months)

Processing Time: Typically within 30 days of filing the application.

Suo Moto Cancellation by Department – When and Why It Happens

Legal Provisions and Triggers under Rule 21

Under Rule 21 of the CGST Rules, 2017, the GST officer may cancel registration suo moto if:

• Returns are not filed for six consecutive months.
• The taxpayer issues invoices without actual supply.
• The taxpayer violates Section 16 (ITC misuse).
• The taxpayer fails to conduct business from the registered address.

In such cases, a Show Cause Notice (Form REG-17) is issued, giving the taxpayer 7 working days to reply in Form REG-18.

If the explanation is unsatisfactory, the officer issues a cancellation order (Form REG-19).

Revival or Revocation of Cancelled GST Registration

When the department cancels a GST registration suo moto, the taxpayer can apply for revocation of cancellation under Section 29(2) read with Rule 23.

Filing Form REG-21 for Revocation

1️⃣ Log in to the GST portal.
2️⃣ Navigate to Services → Registration → Application for Revocation.
3️⃣ File Form REG-21 within 30 days of receiving the cancellation order.
4️⃣ Attach reasons and proof of compliance (e.g., return filings).
5️⃣ Submit electronically for officer review.

If satisfied, the officer revokes the cancellation via Form REG-22 within 30 days.

Conditions and Time Limits for Revocation

• All pending GST returns must be filed.
• Outstanding tax, interest, and penalties must be paid.
• The 30-day window may be extended by the Commissioner under special circumstances.

📘 Reference: Mahadev Trading Company vs. State of Gujarat (2020) – The Hon’ble Court held that revocation should not be denied where the taxpayer has complied within a reasonable time, emphasizing the right to fair opportunity under GST law.

Key Differences – Suo Moto vs Voluntary Cancellation

Common Mistakes and How to Avoid Rejection of Revocation Application

• Not filing pending GSTR-3B and GSTR-1 returns before applying.
• Uploading incomplete or mismatched documents.
• Missing the 30-day revocation deadline.
• Submitting vague reasons in Form REG-21.

✅ Tip: Always review notices and ensure full compliance before filing for revocation to avoid rejections or appeals under Section 107 of the CGST Act.

Case Study – Compliance-Based Revival Example

A small trader in Patna had his registration cancelled suo moto due to six months of non-filing. After clearing all pending returns and dues, he submitted Form REG-21 within 30 days.

The GST officer verified the compliance and restored the GSTIN via Form REG-22, demonstrating that proactive rectification can ensure successful revival under Rule 23.

Conclusion – Compliance Tips for GST Holders

GST registration is both a legal identity and a compliance obligation. Timely filing, accurate reporting, and addressing notices promptly prevent unwanted cancellations.

If your registration is already cancelled, revocation provides a second chance—provided you act within the legal timelines.

Facing GST registration cancellation or revival issues?
Consult our GST lawyers at gstlawyer.in for expert legal help and professional representation in revocation or appeal matters.

Frequently Asked Questions (FAQ)

Q1. What is voluntary cancellation of GST registration?
Voluntary cancellation is initiated by the taxpayer when business ceases or turnover drops below the GST threshold.

Q2. What is suo moto cancellation under GST?
It’s when the tax officer cancels registration due to non-compliance, such as non-filing of returns.

Q3. Can a cancelled GST registration be revived?
Yes, by filing a revocation application in Form REG-21 within 30 days of the cancellation order.

Q4. What are the main reasons for GST registration cancellation?
Non-filing of returns, business closure, change in business constitution, or misuse of GSTIN.

Q5. How can I check my GST cancellation status?
Log in to the GST Portal and go to “Services → Registration → Track Application Status.”

Q6. Can I reapply for GST after cancellation?
Yes, you can apply for a new registration if the revocation period has expired or the earlier registration was voluntarily cancelled.

Q7. What documents are needed for revocation?
Proof of return filings, reply to show cause notice, and Form REG-21 submission.

Q8. What happens if the revocation request is rejected?
You can appeal within the prescribed time under Section 107 of the CGST Act.

References

1. Central Board of Indirect Taxes and Customs (CBIC)
2. Official GST Portal – Cancellation & Revocation Guide
3. GST Act, 2017 – Section 29 (India Code)
4. Circular No. 95/14/2019-GST
5. Mahadev Trading Company vs. State of Gujarat (2020)

About the Author – Advocate Tabish Ahmad

Advocate Tabish Ahmad (B.A. LL.B., LL.M., Diploma in Cyber Law – GLC Mumbai) is a Certified Cyber Law Practitioner and practising Advocate at the Patna High Court. He specializes in Cyber Crime, GST Litigation, and Tax Appeals, with extensive experience in representing clients before judicial and quasi-judicial forums.

He serves as President of the Cyber Lawyers Association and is a Member of the Advocates’ Association, Patna High Court. As a Mentor at the Indian Tax Academy and JurisCrack, he guides young lawyers and students in cyber and tax law practice.

Author of several books on Cyber Crimes, Taxation, and GST, Advocate Tabish Ahmad is recognized for his practical insights on digital law, data privacy, and cyber fraud defence.

{
  "@context": "https://schema.org",
  "@type": "FAQPage",
  "mainEntity": [
    {
      "@type": "Question",
      "name": "What is voluntary cancellation of GST registration?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Voluntary cancellation is initiated by the taxpayer when business ceases or turnover drops below the GST threshold."
      }
    },
    {
      "@type": "Question",
      "name": "What is suo moto cancellation under GST?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "It’s when the tax officer cancels registration due to non-compliance, such as non-filing of returns."
      }
    },
    {
      "@type": "Question",
      "name": "Can a cancelled GST registration be revived?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Yes, by filing a revocation application in Form REG-21 within 30 days of the cancellation order."
      }
    },
    {
      "@type": "Question",
      "name": "What are the main reasons for GST registration cancellation?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Non-filing of returns, business closure, change in business constitution, or misuse of GSTIN."
      }
    },
    {
      "@type": "Question",
      "name": "How can I check my GST cancellation status?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Log in to the GST Portal and check under 'Services → Registration → Track Application Status.'"
      }
    },
    {
      "@type": "Question",
      "name": "Can I reapply for GST after cancellation?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Yes, you can apply for a new registration if the revocation period has expired or previous registration was voluntarily cancelled."
      }
    },
    {
      "@type": "Question",
      "name": "What documents are needed for revocation?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Proof of return filings, reply to show cause notice, and Form REG-21 submission."
      }
    },
    {
      "@type": "Question",
      "name": "What happens if the revocation request is rejected?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "You can appeal within the prescribed time under Section 107 of the CGST Act."
      }
    }
  ]
}