Table of Contents

Difference Between GST Cancellation and GST Suspension Reasons for GST Cancellation Who Can Cancel GST Registration?Required Documents for GST Cancellation How to Cancel GST Registration Online?What Happens After GST Registration Cancellation?NoBroker Assistance for GST Registration and Cancellation Frequently Asked Questions?

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Home Blog Real Estate Legal Guide & Laws How to Cancel GST Registration

How to Cancel GST Registration: Online Process, Form REG-16 & Eligibility

Published : November 26, 2025, 3:05 PM

Updated : November 28, 2025, 6:36 PM

Author : Vivek

Real Estate Legal Guide & Laws

GST Registration

576 views

Summary

To cancel GST registration, business owners must log in to the GST portal, fill Form REG-16, specify the reason for cancellation (such as business closure, turnover below threshold, transfer, or merger), submit required documents and finalize outstanding liabilities. Once submitted, the authority reviews the application and issues an official order for cancellation. You can also apply to revoke cancellation under Form REG-21 if cancelled by the department.

Table of Contents

Learning how to cancel GST registration is important for business owners who have stopped operations, restructured their company, or whose turnover has fallen below the GST limit. Once cancellation is completed, the business is no longer required to file GST returns or charge GST to customers, helping avoid unnecessary compliance and penalties. The cancellation process is done online through the GST portal by submitting a cancellation application with the required details and documents. After approval, the GST number becomes inactive and officially closed.

Difference Between GST Cancellation and GST Suspension

Businesses often compare suspension with the cancellation of GST registration because both affect compliance, but work differently. Suspension is temporary, while cancellation permanently ends a business’s GST obligations. Understanding the difference helps avoid penalties, confusion, and filing mistakes. [1] [2]

Aspect	GST Cancellation	GST Suspension
Meaning	Permanent closure of GSTIN; business no longer under GST; all dues must be cleared.	Temporary pause of GSTIN for verification or discrepancies; not a full closure.
Issued By	Taxpayer or department due to non-filing, fake invoices, or violations.	Usually department-initiated during checks or cancellation proceedings.
GST Return Filing	No future returns filed; pending returns up to the cancellation date must be completed.	Return filing halted; some returns cannot be filed until the suspension ends.
Ability to Issue Invoices	Cannot issue GST invoices or collect GST; doing so attracts penalties.	Cannot issue GST invoices during suspension; collecting GST may trigger disputes.
ITC Reversal	ITC on stock/assets must be reversed or paid in the final return.	ITC is not reversed immediately; the final outcome depends on whether it is restored or canceled.
Duration	Permanent unless revoked within allowed limits.	Temporary until the verification/notice process completes.

Reasons for GST Cancellation

Businesses often review their eligibility for GST registration cancellation when operations change or compliance issues arise. Understanding the common reasons helps prevent penalties and maintain proper GST compliance.

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Voluntary Cancellation

Business discontinued: Closure of business operations renders GST registration unnecessary, prompting cancellation to stop future compliance obligations immediately.
Change in business structure: Mergers, demergers, or conversions to a different business type require fresh registration, resulting in the voluntary cancellation of the existing GSTIN.
Turnover falls below the GST threshold: When annual turnover falls below the mandatory threshold, the business can cancel its registration and avoid unnecessary compliance requirements.

Compulsory Cancellation

Non-compliance: Persistent return defaults or violations allow authorities to cancel registration and restrict the taxpayer's further GST activities.
Fraudulent registration: Fake documents or misused GSTINs result in cancellation to prevent revenue loss and safeguard the GST system’s integrity.
Not conducting business at the declared address: Absence of business operations at the registered location allows officials to cancel the GSTIN after verification.

Death of Sole Proprietor

Transfer of business to legal heir: Upon the owner’s death, the existing GSTIN is cancelled, and the legal heir obtains a new GST registration to continue the business.

Who Can Cancel GST Registration?

Different parties can initiate the process based on the situation, and knowing how to surrender GST registration helps taxpayers complete the procedure smoothly and without errors.

Registered taxpayers: They can apply for cancellation when the business closes, restructures, or no longer needs an active GST registration as per the law.
Legal heirs in case of death: They can cancel the GSTIN after the proprietor’s death and obtain a fresh registration to continue lawful business operations seamlessly.
GST Officer (Suo moto cancellation): The officer can initiate cancellation for serious non-compliance, defaulting returns, fraudulent registration, or violations identified during verification or inspection.

Required Documents for GST Cancellation

Preparing the correct paperwork ensures a smooth, error-free cancellation of GST registration. These documents help verify business status, pending liabilities, and eligibility for completing the cancellation request.

Proof of business closure or transfer: Documents confirming shutdown, sale, or transfer help authorities validate that the business no longer operates under the existing GST registration.
Latest GST returns: Filing all pending GST returns ensures accurate tax reporting and prevents delays during the verification and approval of the cancellation request.
Stock details and tax liability: Information on remaining stock, input tax credit reversal, and final tax dues helps calculate liabilities before completing the GST cancellation process.
Authorization letter (if filed by representative): A signed authorization allows a representative to submit the cancellation request and communicate with GST authorities on the taxpayer’s behalf.

How to Cancel GST Registration Online?

Taxpayers often ask, “How can I surrender my GST registration?” when their business closes or no longer meets GST rules. The process is completed entirely on the GST portal.

Step 1: Sign in to the GST portal with your username and password, then open your dashboard to start the cancellation process.
Step 2: From the top menu, click Services, then choose Registration, and select Application for Cancellation to open the online cancellation form.
Step 3: Fill out the GST REG-16 form on the portal by entering business details, address, contact information, registration type, and the proposed cancellation date.
Step 4: Upload proofs supporting your reason, enter stock details, calculate tax liability, and confirm any input tax credit reversal required carefully.
Step 5: Verify all entered information, then submit the cancellation application for approval using a Digital Signature Certificate or an Electronic Verification Code.

What Happens After GST Registration Cancellation?

After the cancellation of GST registration, the taxpayer must settle all pending liabilities, clear outstanding returns, and confirm accurate tax calculations before closure. Once the GSTIN is cancelled, the number becomes inactive and cannot be used to issue invoices or collect tax. The taxpayer must also file the final GST return, known as GSTR-10, to report closing stock details and pay tax on the remaining inventory, to properly complete the compliance process and ensure all obligations are fully settled responsibly today.

NoBroker Assistance for GST Registration and Cancellation

NoBroker makes GST registration cancellation simple, organised, and error-free for businesses of every size. The team prepares all required documents, verifies closure details, and ensures that every form is completed correctly before submission. From collecting information to uploading files, calculating closing stock liability, and filing the application on the GST portal, NoBroker manages the entire workflow with accuracy!

Frequently Asked Questions?

Q1. How long does GST cancellation approval take?

Ans: GST cancellation approval usually takes a few weeks, depending on the accuracy and verification of the documents. If no discrepancies are found, the officer can process the request more quickly through the portal system.

Q2. Can I reactivate a cancelled GST number?

Ans: A cancelled GST number can be reactivated only through revocation. This is allowed when the cancellation was initiated by the department and the taxpayer applies within the permitted timeline, with the required compliance.

Q3. Do I need to file a final return before surrendering GST?

Ans: Yes, filing GSTR-10 is mandatory. The final return reports the closing stock, pending liabilities, and tax dues, completing compliance before the GST registration is officially cancelled.

Q4. Is GST cancellation allowed for composition dealers?

Ans: Yes, composition dealers can request cancellation when business closes, turnover reduces, or registration becomes unnecessary. They must clear any outstanding taxes and file the required returns before the GSTIN is cancelled.

Q5. Can GST be cancelled if the business has outstanding dues?

Ans: Yes, GST can be cancelled, but outstanding dues must be paid. Authorities require liabilities, interest, penalties, and stock-related tax to be cleared before approving the cancellation request fully.

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Vivek,Author

With over 23 years of experience in Real Estate, and an architecture degree, Vivek is here to help others buy/sell or rent the right way. Through his writing you will find out what people look for, and what you can do to get the best out of your home, and also how to get the best for your home.

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