What to Do If Your GST Registration Is Cancelled by the Department
This blog explains what Suo Moto cancellation of GST registration means, why it happens, and how businesses can respond and apply for revocation. It includes the reasons, forms, timelines, and tips to stay compliant.
Under GST law, keeping your registration active is essential. But sometimes, the tax department cancels a registration on its own. This is called Suo Moto Cancellation, which means “on its own motion.”
This happens when a business fails to follow GST rules. Let’s understand the reasons, the process, and how you can get your registration back.
Why Suo Moto Cancellation Happens
Under Section 29(2) of the CGST Act, the GST officer can cancel your registration for the following reasons:
- Non-Filing of Returns:
- Regular taxpayers: No GSTR-3B filed for 6 months.
- Composition taxpayers: No returns for 3 quarters. - No Business Started: Registered but didn’t start business within 6 months.
- Fraudulent Registration: Registration obtained by fraud or false information.
- GST Law Violations:
- Supplying goods/services without invoices.
- Issuing fake invoices without actual supply.
- Not paying tax, interest, or penalty within 3 months. - Business shut down, owner passed away, or PAN changed due to restructuring.
How the Suo Moto Cancellation Process Works
| Step | Action by Officer | Action by Taxpayer | Form | Timeline |
|---|---|---|---|---|
| 1. Notice | Issues Show Cause Notice (SCN) and suspends registration | Prepare reply | GST REG-17 | N/A |
| 2. Reply | Waits for response | Submit reply and file pending returns | GST REG-18 | Within 7 working days |
| 3. Decision | Reviews reply | N/A | GST REG-20 (drop) or GST REG-19 (cancel) | Based on reply |
| 4. Final Return | N/A | File GSTR-10 for ITC on closing stock | GSTR-10 | Within 3 months of cancellation |
How to Revoke Suo Moto Cancellation
If your registration was cancelled by the officer, you can apply to get it reinstated.
Key Conditions:
- Form: GST REG-21
- Time Limit: Apply within 90 days of the cancellation order.
- Extension: Commissioner may allow up to 180 more days (maximum 270 days).
- Important: File all pending returns and pay dues before applying.
Revocation Process:
- File GST REG-21 with reasons and documents.
- Officer reviews the application.
- If needed, officer issues SCN in GST REG-23.
- Reply in GST REG-24 within 7 working days.
- Final Order:
- If approved: GST REG-22 issued, registration becomes active.
- If rejected: GST REG-05 issued.
Final Tips for Business Owners
- Always file GSTR-3B and GSTR-1/IFF on time.
- Pay all taxes, interest, and penalties promptly.
- Respond quickly to any notice, especially GST REG-17.
Remember: Suo Moto cancellation can stop your business from issuing invoices, collecting GST, or claiming ITC. Stay compliant and act fast if you receive a notice.
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Note-All the aforementioned information in the article is taken from authentic resources and has been published after moderation. Any change in the information other than fact must be believed as a human error. For queries mail us at marketing@myitronline.com
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Krishna Gopal Varshney
An editor at apnokacaKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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Krishna Gopal Varshney
An editor at Myitronline
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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