Compliance Pack

Cancellation of registration REG-16 and revocation REG-21

If your business has stopped or changed hands, we close the GSTIN properly: we work out tax on closing stock, file REG-16 and then the final return GSTR-10 so no late fee or notice follows.
Deadline: REG-16 within 30 days of the event (Rule 20). GSTR-10 within 3 months of the cancellation date or order date, whichever is later. REG-21 within 90 days of service of the cancellation order, extendable by up to 180 days (Rule 23 as amended in 2023).
Done in REG-16 filed within 2 working days of stock and return details; officer order usually within 30 days. REG-21 filed within 2 working days after all pending returns and dues are cleared.
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Reason and requested cancellation date
Did you cancel it yourself
File all pending GSTR-1 and GSTR-3B up to the cancellation date
ARN for REG-16 or REG-21

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Sample caseTS-GST-REG-03

Cancellation of registration REG-16…

REG-16 within 30 days of the…

IWhat we need from you8 documents
DQuestions for you6 questions
FForms8 steps
DWhat you getARN for REG-16 or REG-21

Fixed fee₹2,499+ 18% GST

Answer in brief

If your business has stopped or changed hands, we close the GSTIN properly: we work out tax on closing stock, file REG-16 and then the final return GSTR-10 so no late fee or notice follows. If the department cancelled your GSTIN for missed returns, we file every pending return, clear dues and apply for revocation in REG-21 within the time limit.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

CGST Act 2017, Sec 29(1)
Registered person or legal heirs may seek cancellation for closure, transfer, change in constitution or no longer being liableSource
CGST Act 2017, Sec 29(2)
Officer may cancel, even retrospectively, for contravention, non-filing of returns, voluntary registrant not starting business within 6 months, or fraud, after a hearingSource
CGST Act 2017, Sec 29(5)
On cancellation, pay the higher of ITC on stock and capital goods held, or output tax on themSource
CGST Rules 2017, Rule 20
REG-16 filed within 30 days of the event, with stock of inputs, semi-finished and finished goods, capital goods, liability and payment; one-year wait for voluntary registrants omitted from 23 January 2018Source
CGST Rules 2017, Rule 22
Show cause in REG-17, reply in REG-18 within 7 working days, cancellation order REG-19 within 30 days, or REG-20 dropping; non-filing proceedings dropped if all returns filed with tax, interest and late feeSource
CGST Act 2017, Sec 30 and CGST Rules 2017, Rule 23 (Notification 38/2023-CT)
Revocation in REG-21 for suo moto cancellation; within 90 days of service of order, extendable by up to 180 days; returns and dues first if cancelled for non-filing; REG-22 order within 30 days or REG-23 notice, REG-24 reply in 7 working days, REG-05 rejectionSource
CGST Act 2017, Sec 45
Final return GSTR-10 within 3 months of date of cancellation or order, whichever is laterSource
Circular 69/43/2018-GST
SOP for REG-16: complete applications accepted within 30 days; effective date as requested but not before application date; tax on stock can be paid with GSTR-10Source
57th GST Council recommendations, GSTN FAQ (13 October 2026), not yet notified
Four Rule 21 grounds to be omitted; registrations suspended 6 months for non-filing or no bank account may be cancelled by the system and revoked by the system on REG-21 within 180 days; auto-acceptance of REG-16 in REG-38 where dues are clearSource
Government fee
No fee for REG-16 or REG-21. On cancellation, tax under Sec 29(5) on closing stock and capital goods is payable (higher of ITC or output tax). Sources: https://gstgyaan.com/section-29-cancellation-or-suspension-of-registration , https://gstcouncil.gov.in/sites/default/files/2024-06/circular-no-69_new.pdf
Late fee or penalty
GSTR-10 late fee under Sec 47(1): ₹100 a day per Act, ₹200 a day total, capped at ₹5,000 per the practitioner text (verify). Past amnesties (Notification 68/2020, 08/2023) have closed. Non-filing leads to GSTR-3A notice and best judgment assessment. Sources: https://gstgyaan.com/section-45-final-return-gstr-10 , https://gstcouncil.gov.in/sites/default/files/2024-06/circular-no-69_new.pdf . For revocation after non-filing, all pending returns with tax, interest, penalty and late fee must be paid first. Source: https://gstzen.in/a/revocation-of-cancellation-of-registration-cgst-rule-23.html

On the portal

Login to gst.gov.in
Cancellation: Services > Registration > Application for Cancellation of Registration
Check the prefilled details, choose the reason and the date, enter stock and liability figures, attach documents
Submit with DSC or EVC and note the ARN
After REG-19, Services > Returns > Final Return (GSTR-10)
Revocation: first clear all pending returns and dues, then Services > Registration > Application for Revocation of Cancelled Registration
Enter reason for revocation, attach documents, submit with DSC or EVC
Watch for REG-23 notice or REG-22 order on the dashboard

What trips people up

Skipping GSTR-10 because there is no stock or sales
A nil GSTR-10 is still required; late fee and notices follow otherwiseSource
Pending GSTR-1 or GSTR-3B before the cancellation date
File all returns up to the effective date before applyingSource
Hoping to revoke a voluntary cancellation
REG-21 is only for suo moto cancellation; apply for fresh registration insteadSource
REG-21 cannot be filed though the order is recent
When cancelled for non-filing, all returns and dues must be paid firstSource
GSTR-10 not filed, ASMT-13 assessment issued
File GSTR-10 within 30 days of the order to withdraw it; interest and late fee remainSource
Missed the 30-day window for REG-16 after piecemeal closure
SOP says lateness should be read liberally; apply with explanationSource

People ask

Is there a minimum period before a voluntary registrant can cancel?

No. The one-year bar was omitted in January 2018.Source

Does cancellation wipe out old dues?

No. Liability for periods before and after cancellation remains.Source

How long do I have to apply for revocation?

90 days from service of the cancellation order, extendable by up to 180 days by a senior officer for sufficient cause.Source

What tax is paid on closing stock?

The higher of ITC on stock and capital goods, or output tax on them, from the credit or cash ledger.Source

My registration was suspended for non-filing. What if I file now?

For non-filing, proceedings are dropped in REG-20 once all returns are filed with tax, interest and late fee.Source

Can a legal heir close a deceased proprietor's GSTIN?

Yes, the legal heir files REG-16; the 30-day limit does not apply on death.Source

IDFD

How we solve it: 4 steps

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Step 1 of 4 · What we need from you

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Ready0 / 8

Reason and requested cancellation date
Closing stock and capital goods values
Last return filed and ARN
Correspondence address, mobile and email
Successor GSTIN and transfer deedOptional
Cancellation order REG-19 copyOptional
All pending returns and duesOptional
DSC or EVC of signatory

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₹2,499 + ₹449.82 GST = ₹2,948.82

One time. Delivered in REG-16 filed within 2 working days of stock and return details; officer order usually within 30 days. REG-21 filed within 2 working days after all pending returns and dues are cleared.. Due: REG-16 within 30 days of the event (Rule 20). GSTR-10 within 3 months of the cancellation date or order date, whichever is later. REG-21 within 90 days of service of the cancellation order, extendable by up to 180 days (Rule 23 as amended in 2023).

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