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A GST registration obtained in India can be cancelled by the registered person or by GST Officer or by the legal heirs of the registered person, in case of death of the person registered under GST.

Voluntary Cancellation

The Act certainly provides the freedom to a taxpayer to apply for cancellation of GST registration whenever:

• He wants to discontinue or close his business permanently.
•  He ceases to be liable to pay tax.
•  He transfers his business on account of merger, amalgamation, de-merger, sale, lease or otherwise.
•  He prefers to change the constitution of his business (leading to a change in PAN).
•  He did not commence any business or is no longer required to be liable to work as a registered entity
• Death of the Proprietor in case of a sole proprietorship

Non-Voluntary / SUO Moto Cancellation

A tax official at any time with the subject to provisions of the act and on giving a sufficient opportunity to the taxpayer to exhibit his case – can issue an SUO MOTO order for cancellation of GST registration for the following reasons :

• When the taxable person under GST does not conduct any business from the declared place of business.
•  On the death of proprietor or authorized individual of business.
•  If the taxpayer defaults or operates its business against the provisions of the GST Act, 2017.
• If a person having GST registration has continuously not filed GST returns for six months.
•  When business is not commenced by the taxpayer after registration up to a certain time-frame.
•  If the taxpayer issues an invoice or bill without supply of goods or services in violation of the GST Act and/or GST rules.

Before the cancellation of registration, the Officer would issue a notice to such person whose GST registration is liable to be cancelled, requiring show cause within seven working days from the date of service of such notice. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand cancelled.

GSTR-10 (Final Return)