GST Cancellation & Final Returns – Complete Guide
At Vetri Audit Services Private Limited, we guide you through the proper closure of your GST registration and ensure compliance with all legal requirements, including the timely filing of final returns.
What is GST Cancellation?
GST cancellation refers to the termination of a GST registration when a taxpayer no longer needs it, or when the government cancels it due to non-compliance. Once cancelled, the taxpayer is no longer required to collect or pay GST, and must file a final return.
Types of GST Cancellation
| Type | Description |
|---|---|
| Voluntary | Initiated by the taxpayer (e.g., business closed, turnover below threshold) |
| Suo moto | Initiated by the department (e.g., due to non-filing of returns, violations) |
| Migration-related | For businesses not liable to register under GST post-migration |
Who Can Apply for GST Cancellation?
- Sole proprietors, partnerships, LLPs, or companies closing operations
- Businesses transferring ownership or changing constitution
- Entities no longer liable for GST due to reduced turnover
- Legal heirs of deceased proprietors
Steps to Apply for GST Cancellation (Form GST REG-16)
GSTR-10 – Final Return After Cancellation
Who must file?
All registered persons whose registration is cancelled, except:
- Input Service Distributors
- Non-resident taxable persons
- Composition taxpayers (who file GSTR-4)
What it includes:
- Details of closing stock (with tax liability)
- Outstanding liabilities
- ITC reversal and payments
Due date:
Within 3 months of the date of cancellation or cancellation order—whichever is later.
Penalty for late filing:
- ₹100 per day per Act (₹200 total per day – CGST + SGST)
- Max: ₹10,000
GST Revocation of Cancellation – Complete Guide
If your GST registration is cancelled by the department, you may be eligible to apply for revocation and restore your GSTIN.
What is Revocation of GST Registration?
Revocation is the reactivation of a GST registration cancelled by the tax officer (not voluntarily by the taxpayer). It's a legal remedy to continue business under GST.
Who Can Apply for Revocation?
- Businesses whose GST registration was cancelled suo moto by the department
- Not available for voluntary cancellations
Time Limit for Filing Revocation Request
- Within 30 days from the service of cancellation order (Form REG-19)
- Extendable:
- +30 days with approval of Joint Commissioner
- +30 days with approval of Commissioner → Maximum total: 90 days
How to File Revocation Application – Step-by-Step (Form GST REG-21)
Officer's Response Flow
| Form | Purpose |
|---|---|
| REG-22 | Approval of revocation (within 30 days) |
| REG-23 | Show Cause Notice (SCN) if rejection is proposed |
| REG-24 | Taxpayer’s reply to SCN (within 7 days) |
Note: If accepted, registration is restored. If rejected, the taxpayer can appeal under GST provisions.
Key Reminders before Filing
- File all pending GSTR-3B, GSTR-1, and pay due taxes
- Clear all late fees and interest
- Keep documents organized and ready for upload
- After revocation, file all missed returns from the cancellation date
Example Scenariog
- GSTIN Cancelled: 01-May-2025 (due to non-filing)
- Dues cleared, returns filed: 25-May-2025
- Revocation filing deadline: 31-May-2025
- File REG-21 within this period or request for extension if needed
Need Assistance?
At Vetri Audit Services Private Limited, we offer end-to-end support in:
- GST Cancellation & GSTR-10 Filing
- Revocation of Cancellation under REG-21
- Handling SCNs (REG-23) and preparing replies (REG-24)
- Advisory on ITC reversals, interest & late fee computations
Talk to our GST Experts today for personalized assistance.
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