GST Compliance – Cancellation of Registration (REG-16)

Cancellation of GST Registration (Application by Taxpayer)

Edition: September 2025
Disclaimer: This manual is for compliance facilitation. It does not substitute statutory provisions, notifications, or circulars. Taxpayers must verify with the CGST/SGST Acts, Rules, and GSTN updates.

✍️ Preface

GST registration can be cancelled by a registered person if they cease to be liable, close their business, change constitution, or transfer business. The application must be filed electronically on the GST Portal in Form GST REG-16 within 30 days of the event warranting cancellation.

This manual consolidates the law, procedure, timelines, FAQs with statutory basis, and a compliance checklist.

📑 Table of Contents

1. Law Governing Cancellation

2. Grounds for Voluntary Cancellation

3. Step-by-Step Filing Process

4. Timelines & Effective Date

5. Withdrawal of Application

6. FAQs (with Basis)

7. Compliance Checklist (Fillable Format)

⚖️ 1. Law Governing Cancellation

• Section 29, CGST Act, 2017 – Cancellation or suspension of registration.

• Rule 20, CGST Rules, 2017 – Application for cancellation.

• Form GST REG-16 – Prescribed for taxpayer’s application.

🎯 2. Grounds for Voluntary Cancellation

As per FAQs, cancellation can be applied when:

• Discontinuance/closure of business.

• Ceased to be liable to pay tax.

• Change in constitution of business leading to PAN change.

• Transfer of business by sale, merger, demerger, lease, etc.

• Registered voluntarily but did not commence business.

• Death of sole proprietor (legal heirs can apply).

Not available to:

• TDS/TCS deductors.

• Persons allotted UIN.

🛠️ 3. Step-by-Step Filing Process

As per GST Portal Manual:

1. Login: Visit www.gst.gov.in → Login with credentials.

2. Navigate: Services > Registration > Application for Cancellation of Registration.

3. Basic Details Tab: Auto-filled details; confirm or update “Address for Future Correspondence”. Save & Continue.

4. Cancellation Details Tab: Select reason:

   • Change in Constitution (PAN change) – Enter transferee GSTIN.

   • Ceased to be liable – Enter stock details & offset liability from cash/credit ledger.

   • Closure of business/Other reasons – Enter stock value & liability offset.

   • Transfer of business – Enter transferee GSTIN.

5. Verification Tab: Tick declaration → Select Authorized Signatory → Enter Place.

6. Submit using DSC/EVC (OTP on mobile/email).

7. ARN generated → Acknowledgement sent by SMS/email.

8. Tax Officer reviews and issues order.

⏰ 4. Timelines & Effective Date

• Application to be filed within 30 days of event.

• Effective date cannot be beyond 30 days from filing date.

• GSTIN status shows Application filed for cancellation until order is passed.

📌 5. Withdrawal of Application

• Allowed only if officer has not taken action.

• Path: Services > User Services > View My Submissions → Withdraw option.

• Once withdrawn, intimation sent to officer.

❓ 6. FAQs (with Basis)

Q1. Who can file application for cancellation?
Existing/migrated taxpayers or legal heirs in case of death. (FAQ 2)

Q2. Who cannot file?
TDS/TCS deductors, UIN holders. (FAQ 4)

Q3. What about stock held on cancellation date?
Tax liability on stock must be paid, offset from cash/credit ledger. (FAQ 6)

Q4. Is it mandatory to give reasons?
Yes, in Reason for Cancellation field. (FAQ 15)

Q5. Can I amend registration after applying for cancellation?
Core fields – No. Non-core fields – Yes, until officer acts. (FAQ 10-11)

Q6. What if suo moto cancellation proceedings are initiated?
Then taxpayer cannot file cancellation application. (FAQ 19-21)

Q7. What is status after filing?
GSTIN shows “Suspended” until order issued. (FAQ 23-25)

✅ 7. Compliance Checklist (Fillable Format)