Introduction

In India's dynamic tax scenario, companies have to keep themselves updated with the Goods and Services Tax (GST) regime. Yet, there are situations where a registered business might need to surrender its GST registration—whether due to closure, decline in turnover, or business structure change. Likewise, if a cancellation order has been issued erroneously by the authorities, taxpayers can opt for revocation. This manual gives an entire account of GST Cancellation India, the GST Revocation Process, and the process of GST Deregistration India under the new 2025 amendments.

WHAT IS GST CANCELLATION?

GST Cancellation India refers to the process of deactivating a GST registration either voluntarily, by the proper officer, or legally due to non-compliance. Once cancelled, the business cannot collect GST, issue tax invoices, or claim input tax credits.

Key scenarios include:

Voluntary cancellation when turnover falls below the threshold.
Closure or discontinuance of business.
Change in constitution (e.g., sole proprietor converting into a company).
Compulsory cancellation due to violations under GST law.

For smooth GST Deregistration India, businesses must file all pending returns and clear tax dues before applying.

GROUNDS FOR CANCELLATION

The GST law (Section 29 of the CGST Act, 2017) specifies clear grounds for GST Cancellation India. These include:

1. Discontinuance of business – permanent closure or shutting down.

2. Change in constitution – merger, amalgamation, or restructuring.

3. No business activity – where a taxpayer remains inactive after obtaining registration.

4. Violation of GST provisions – failure to furnish returns, fraudulent invoices, or misuse of Input Tax Credit (ITC).

5. Turnover below exemption limit – voluntary cancellation.

When cancellation is initiated by the department, taxpayers are served a show-cause notice in Form GST REG-17. Responding correctly ensures eligibility for the GST Revocation Process.

REVOCATION PROCESS

If the GST officer cancels registration on their own (suo moto), businesses can apply for restoration through the GST Revocation Process.

Step-by-Step GST Revocation Process:

1. Login to GST Portal – access the revocation application form (REG-21).

2. Submit Grounds for Revocation – explain reasons for cancellation being incorrect.

3. Filing Pending Returns – all GSTR-3B and GSTR-1 must be filed before application.

4. Officer Verification – tax officer examines the request within 30 days.

5. Approval or Rejection – communicated via Form REG-22 (approval) or REG-05 (rejection).

Recent amendments allow businesses to apply for revocation within 90 days from the date of cancellation, extendable up to 180 days upon approval. This change has simplified GST Deregistration India and improved recovery of wrongly cancelled registrations.

The GST Revocation Process ensures businesses do not suffer compliance gaps and can continue operations smoothly.

DOCUMENTS REQUIRED

For GST Cancellation India and the GST Revocation Process, proper documentation is mandatory.

For Cancellation:

PAN card of the business/owner
GST registration certificate
Proof of business closure (if applicable)
Bank account statements
Final return in Form GSTR-10

For Revocation:

Application in Form REG-21
Reply to show-cause notice (if issued)
Filed returns acknowledgment copies
Tax payment challans, if any dues are cleared

Maintaining accurate documentation is critical for both GST Deregistration India and successful completion of the GST Revocation Process.

HOW LAWFINITY HELPS

At Lawfinity, we act as your trusted compliance partner in navigating GST Cancellation India and the GST Revocation Process. Our team of legal and tax professionals ensures:

Filing of cancellation applications and returns.
Assistance with documentation and evidence submission.
Reply drafting for show-cause notices.
Representation before GST authorities.
Revocation applications with high approval success.

With expertise in GST Deregistration India, Lawfinity ensures you remain compliant, avoid penalties, and restore your GST registration where required.