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Cancellation of GST Registration and Revocation of Cancellation [Section 29 & 30]

(1) Cancellation by Proper Officer on his Own Motion or on an Application filed by the Registered Person or by his Legal Heirs [Section 29(1)] :

The proper officer may.—

— either on his own motion or

— on an application filed by the registered person or

— by his legal heirs, in case of death of such person,

— cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where.—

  1. the business has been discontinued, transferred fully for any reason including death of the proprietor. amalgamated with other legal entity, demcrged or otherwise disposed of; or

  2. there is any change in the constitution of the business; or

  3. the taxable person, other than the person registered under section 25(3) (i.e. voluntary registration), is no longer liable to be registered under section 22 or section 24.

(2) Cancellation of GST Registration by the Proper Officer in Certain Cases [Section 29(2)] :

The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where.—

  1. a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

  2. a person paying tax under section 10 (i.e. composition scheme) has not furnished returns for three consecutive tax periods; or

  3. any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or

  4. any person who has taken voluntary registration under section 25(3) has not commenced business within six months from the date of registration: or

  5. registration has been obtained by means of fraud, willful misstatement or suppression of facts:

However, the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

(3) Cancellation not to affect Liability to Pay Tax or to discharge any obligation for any period prior to date of cancellation [Section 29(3)]:

The cancellation of registration under this section shall not affect the liability of the person to pay lax and other dues under this Act or to discharge any obligation under this Act or the rules made there under for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.

(4) Cancellation under SGST / UGST to be deemed to be cancellation under CGST Act [Section 29(4)] :

The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.

(5) Amount equivalent to input lax credit to be paid back on cancellation of registration [Section 29(5)] :

Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to—

— the credit of input (ax in respect of inputs held in stock and inputs contained in semifinished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or

— the output tax payable on such goods.

whichever is higher, calculated in such manner as may be prescribed:

However, in case of capital goods or plant and machinery. the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (See relevant rule 44 of CGST Rules)

(6) Manner of Calculation of amount payable under Section 29(5) :

The amount payable under section 29(5) shall be calculated in such manner as may be prescribed.

Cancellation of GST Registration [Section 29]

(1) Cancellation by proper officer on his own or on an application filed by the registered or by his legal heirs [ Section 29(1)] :

The officer may,—

— either on his own motion or

— on an application filed by the registered person or

— by his legal heirs, in case of death of such person,

— cancel the registration, in such manner and within such period as may be prescribed,

having regard to the circumstances where,—

  1. the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or

  2. there is any change in the constitution of the business; or

  3. the taxable person, other than the person registered under section 25(3) (i.e. voluntary registration), is no longer liable to be registered under section 22 or section 24.

(1) Cancellation of registration by the proper officer in certain cases [Section 29(2)] :

The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,—

  1. a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

  2. a person paying tax under section 10 (i.e. composition scheme) has not furnished returns for three consecutive tax periods; or

  3. any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or

  4. any person who has taken voluntary registration under section 25(3) has not commenced business within six months from the date of registration; or

  5. registration has been obtained by means of fraud, willful misstatement or suppression of facts:

However, the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

 
Special Provisions relating to Certificate of GST Registration  issued to Casual Taxable Person (CTP) and Non-Resident Taxable Person (NRTP)  [Section 27] GST - Ready Reckoner in India Furnishing of GST Returns by Registered Person [Section 39]
 

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