Our main topic in this article is “Cancellation of GST registration”. In this article, I have explained in detail what can be the reasons for cancellation of GST, documents required for GST Cancellation, step by step process, status tracking and many more.
If you want to know about the new GST update, why the government reduced GST rates, and the sector-wise GST 2.0 product list (which products will fall under which tax slab), I’ve already written a fully dedicated article on these topics. Kindly invest some time to read it.
Before starting the detailed process, I will briefly explain what GST registration is and why it may need to be cancelled. Please read the article till the end.
What is GST registration?
The full name of GST is goods and services tax. If your business turnover is more than 20 lakh INR (10 lakh INR in some states), in this condition you have to take a GST number; The process of getting a GST number is called GST registration. Obtaining a GST number allows the government to include your business in its tax system. With a GST number, you can collect GST from customers on your invoices. However, you must file regular GST returns.
Why cancellation may be required?
There can be many reasons for cancellation of GST; I have covered some of them below.
1. The business has closed down
In the event that your business has shut down entirely, what use does the GST number serve? I will still have to file monthly returns even if there are no transactions.
2. Turnover has fallen below the limit
If for some reason your business turnover falls below INR 20 lakh (if it is a services-related business) or INR 40 lakh (goods), then you can seek voluntary cancellation.
There could be many other reasons, but it’s impossible to cover them all. I hope these two examples give you an idea of why GST registration is necessary.
What is GST Registration Cancellation?
Cancellation of GST registration means removing your GST number, or your business, from government systems. This deactivates your GST number and prevents you from filing returns.
Who Can Apply for GST Cancellation?
Any registered individual or business can apply for GST cancellation, but they must have a valid reason. GST cancellation is also divided into many types. Your GST cancellation can be voluntary or mandatory. Below I have given some common cases where people apply for cancellation and in which category they are placed.
Voluntary cancellation
In voluntary cancellation, if you cancel GST voluntarily, then the application will fall under the category of voluntary cancellation. The main point is that when anyone applies for GST cancellation of their own free will, then it is considered as voluntary cancellation.
Mandatory cancellation
In some cases GST cancellation becomes mandatory, like if you have not filed your return for 6 months, the business address is wrong, due to which the verification has been cancelled, or some fraud has been committed. Then, in this condition, the government cancels your GST number itself or sends you a notice. This type of cancellation is kept in mandatory cancellation.
Closure of business
If you have permanently closed your business, then the GST number is of no use; this type of GST cancellation is kept in the closure of business.
There may be many more parts to it; I have told you main types of cancellation.
Documents Required for GST Cancellation
Cancelling your GST registration requires certain documents that prove you have completely closed your business or that you no longer need GST. When you apply for cancellation, you must upload these documents to the online portal.
List of necessary documents
1. Application for cancellation (Form GST REG-16) This is a form that you have to upload on the government’s GST portal. In this application, you have to give the reason why you want to cancel the GST.
- Proof of business closure: If you have completely closed your business, then it is necessary to upload evidence of the same, such as electricity disconnection, rent agreement termination, or a closure letter.
- Latest GST Return Filed (GSTR-3B or GSTR-1) It is mandatory to file your last return so that the department knows that you have cleared everything
- Declaration or affidavit (optional): A simple declaration stating that you voluntarily seek cancellation and that all dues are cleared. In some cases, a notarized affidavit is also acceptable.
- PAN and Aadhaar proof of business owner identity requires a copy of the PAN card and Aadhaar card to verify that you are the owner.
- Bank account closure proof (if applicable) If your business’s bank account has also been closed, it would be helpful to attach its closure letter or statement.
Step-by-Step Process to Cancel GST Registration Online
Login to GST Portal
First, go to www.gov.in and log in with your username and password. This is the same portal you use to file your application returns.
Navigate to Application for Cancellation
After logging in, the dashboard will open. From there, you can click on Services, followed by Registration, and then apply for cancellation of registration. From here, the app cancellation process can be initiated and completed.
Fill GST REG-16 Form
Now a form GST REG-16 will open in front of you. In this you have to fill in basic details like business name, GST number, reason for cancellation, date when the business was closed, and stock information of the remaining stock.
Submit Declaration and Documents
After filling the form, you need to upload some basic documents like proof of closure of business, the last GST return, PAN or Aadhaar, and a short declaration that you are speaking the truth.
After uploading everything, click on submit, and the work will be done.
Revocation of GST Registration Cancellation
Revocation means to get the GST cancellation done by the department reinstated. If your GST number has been cancelled by the government (not at your request) and you feel that the cancellation was wrong or you want to start work again, you can apply for revocation.
When the cancellation is done by the department
If your GST number has been cancelled by the officer because you have not filed returns for 6 months, your address was wrong, or you have violated the rules, then in such a situation you get a notice, and even after that if you feel that the cancellation was wrong, then you can apply for revocation.
But for revocation, you have to apply only within 30 days after the GST cancellation. You cannot apply for revocation after 30 days.
Procedure:
- Login to https://www.gst.gov.in/
- Services > Registration > Application for Revocation of Cancellation
- A form will open—enter the reason why you want to reactivate.
- File any pending returns
- Upload documents (like proof of return, declaration, etc.)
- Submit—The officer will review it, and if everything is in order, your wrong number will be reactivated.
Time Limit & Status Tracking
The cancellation process typically takes between 7 and 15 days. Occasionally, it can take up to a month due to workload or documentation issues. If the application remains incomplete or the officer has doubts, it may take longer. After the cancellation is approved, you receive an order (Form REG-19) confirming that the GST number has been deactivated.
How to Check Status
You can check your GST cancellation status online—just follow these steps:
- Log in to www.gst.gov.in.
- Go to Services > Registration > Track Application Status
- Select “Registration” in the module.
- type your ARN (Application Reference Number).
- Press “Search”—the status will appear:
Common Mistakes to Avoid
Filling an incomplete form
All details in Form REG-16 must be entered accurately—such as the reason for cancellation, the date the business closed, and stock information. If anything is omitted, the officer may ask for clarification.
Documents Upload Now
Proof of closure, last return, PAN/Aadhaar—all these documents are required. If you don’t upload them, your application may be rejected.
Non-filing of pending returns
All pending tax returns (Gaster-3B, Gaster-1) prior to cancellation must be filed. Failure to do so may result in revocation or penalties.
give the wrong reason
Writing an incorrect or confusing reason can raise suspicions in the officer’s eyes. The reason should be clear and simple—such as “business closed” or “turnover fell below the limit.”
Missing the deadline (in case of revocation)
If the department has issued a cancellation, you must apply for revocation within 30 days. Missing this time can be quite a hassle.
Not saving the ARN
Make a note of your Application Reference Number (ARN) as soon as you receive it – this is the method used to track your status. If you forget it, checking your status can be difficult.
FAQs
1. Who can apply for GST cancellation?
Any person or business that has a GST registration and feels that GST is no longer required can apply for cancellation.
Do I have to file a return after GST cancellation?
Yes, a final return (Guster-10) has to be filed – stating that the business has been closed and what happened to the stock.
If the department has cancelled the GST, how to activate it again?
You can apply for a revocation within 30 days of receiving the cancellation order. You can log in to the portal and fill out the “Application for Revocation.”
How much time does GST cancellation take?
It usually takes 7 to 15 days. Sometimes it can take up to a month depending on the documentation or the officer’s review.
How to check GST cancellation status?
The status can be checked by logging into the Gast portal, going to the Track Application Status section and entering the AARN number.
If the business is closed, is it necessary to cancel the GST?
Yes, if the business is completely closed, the GST should be cancelled – otherwise unnecessary returns will have to be filed and penalties may be levied.
Can I get re-registration after the GST is cancelled?
Of course, if you start your business again or the turnover limit is crossed, you can get a new gas registration.
Conclusion
Cancelling GST registration is an important step when your business has closed, turnover is below a certain limit, or GST is not required at all. It is important to understand the process, have the right documents ready, and follow the online portal step-by-step to avoid unnecessary compliance and penalties.
Whether the cancellation is voluntary or done by the department, if you carefully follow the above points, the process will be a breeze.
Call to action
If your business isn’t covered by GST, or you feel it’s no longer worth keeping the registration, apply for GST cancellation today. Log in to the portal, fill out Form REG-16, upload your documents, and track your status.