Key takeaways
- From 1 November 2026, a business must apply for cancellation in REG-16 within 30 days of the event that requires it, such as closing the business.
- All returns up to the date of cancellation must be filed before applying.
- Eligible applications can now be cancelled automatically by the system; others are decided by the officer within set timelines.
- After cancellation, file the final return GSTR-10 within three months, and pay tax on stock or capital goods held as required.
Closing a business, merging it into a new entity or simply no longer needing GST? You must cancel the registration properly, or returns keep falling due and late fees keep adding up. The rules changed on 1 November 2026. Here is how to cancel GST registration today.
When can you cancel?
A registered person can apply for cancellation in situations such as:
- The business has closed, been sold, merged, amalgamated or transferred
- The constitution has changed and the PAN has changed (a new registration is taken for the new entity)
- You are no longer liable to be registered, for example turnover has fallen below the limit
- A sole proprietor has died (legal heirs apply)
The new 30-day rule
Under the revised Rule 20 of the CGST Rules, effective 1 November 2026, you must apply in Form GST REG-16 within 30 days of the event that requires cancellation. The 30-day limit does not apply on the death of a sole proprietor. When you file the application, the registration is suspended until the proceedings are complete, so you cannot issue tax invoices during that time.
Before you apply
- File every return up to the date from which you want cancellation. If you filed GSTR-1 for a period, GSTR-3B for that period must also be filed.
- Pay all tax, interest and late fees.
- Work out the input tax credit to be reversed on stock of inputs, semi-finished and finished goods, and capital goods held on the cancellation date.
- Decide the date from which cancellation should apply.
From 1 December 2026, the revised REG-16 form includes a table for stock and credit reversal, and lets you file a nil return for the period after your last return up to the cancellation date.
How the application is decided
- Automatic cancellation. If all returns are filed and dues paid, and either your tax on supplies to registered persons never exceeded ₹2.5 lakh in any month or you have filed the final return, the system can cancel the registration automatically (order in REG-38).
- Officer decision. In other cases, the officer cancels the registration (REG-19) or raises a query (REG-03) within 15 days.
- Reply. If you get a query, reply in REG-04 within 15 days. The officer decides within 15 days of your reply.
- Deemed outcomes. If the officer does not act in time, the application is treated as approved. If you do not reply, it is treated as rejected.
The officer may also propose an earlier effective date for cancellation by notice, which you can reply to within 30 days.
After cancellation: the final return
Once cancelled, file the final return in Form GSTR-10 within three months of the date of cancellation or the cancellation order, whichever is later. It reports the stock held and the tax payable on it. Not filing it leads to notices, late fees and assessment by the officer.
Cancellation does not wipe out past liabilities. Tax, interest and penalties for earlier periods can still be demanded after the registration is cancelled.
Cancellation by the department
The department can also cancel a registration, for example for not filing returns for a continuous period or for not furnishing bank account details. From 1 November 2026, the grounds in the rules have been narrowed to return-filing defaults and a few other specific cases, while serious grounds in the law, such as fraud, still apply.
Getting a cancelled registration restored
- Officer cancellations: apply for revocation in REG-21 within 90 days of the cancellation order, after filing pending returns and paying dues. This can be extended by up to 180 days by senior officers in eligible cases.
- System cancellations for non-filing (from 1 April 2027): a new Rule 23A lets you apply within 180 days after filing all pending returns with tax, interest and late fees, and the portal restores the registration.
Closing your business entirely? See our guides to closing a private limited company. Our GST cancellation and restoration team clears pending returns, files REG-16 and GSTR-10, and handles revocation where needed.
This article explains the revised CGST Rules notified in October 2026, as understood on the date shown. Effective dates differ for different parts of the change; confirm the current position on the GST portal.
Frequently asked questions
Can I cancel GST registration if my turnover is below the limit?
Yes. A person who registered voluntarily, or whose turnover has fallen below the limit, can apply to cancel, provided all returns are filed and dues are paid.
Does cancellation remove past liabilities?
No. Cancellation does not affect your liability for tax, interest or penalties for any period before cancellation, whether assessed before or after it.
What if I miss filing GSTR-10?
A notice is issued, and if you still do not file, the officer can assess the liability and late fees apply.
Can a cancelled registration be restored?
Yes, through revocation. For cancellations by the officer, apply in REG-21 within 90 days of the order, after filing pending returns. From 1 April 2027, a separate faster route applies to cancellations made automatically by the system for non-filing.