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When GST Registration is Cancelled?

GST Notices & Circumstances Under Which Notice Can Be Issued by the Proper Officer:

Under the provisions of section 29(2) of the Central Goods and Services Tax Act, 2017 details and situations have been mentioned under which the proper officer can cancel the GST registration. Situations:

1-     In case of non-filing of GST Return under the following cases:

  • In the case of the composition scheme dealer, the taxpayer has not submitted three consecutive GST returns,

  • In any other case, where the taxpayer failed to file six consecutive GST returns.

2-     If the GST registration has been obtained either through wilful misstatement or fraud or by suppression of facts.

3-     The taxpayer has obtained voluntary GST registration but has not commenced business within a period of six months after the date of registration.

4-     The taxable person who is registered has violated the provisions of the GST Act or the GST Rules made thereunder.

Under any of the above cases, the proper officer has the power to initiate cancellation proceedings by issuing notice in form GST REG-17.


Provisions Related to the Issuance of Notice in Form GST REG-17

The provision to section 29(2) made it mandatory for the proper officer to give an appropriate opportunity to the taxpayer of being heard. Along with it, rule 22(1) of the Central Goods and Services Tax Rules, 2017, also states that prior to the cancellation of GST registration the prior officer has to issue a notice in form GST REG-17 which will include the following:

  • The reasons on which the proper officer believes that GST registration should be cancelled.

  • Instructions for the registered taxable person to submit a proper reply within seven working days from the date of service of notice in form GST REG-17.

  • Date and time of the personal hearing to be held in the case, if any.


Action registered Taxable Person can Take Post Receipt of Notice in Form GST REG-17:

GST registered persons who have received notice in form GST REG-17 can take any of the following actions:

  • If satisfied, can accept the cancellation and pay all pending dues accordingly

  • The registered person can submit an appropriate reply in form GST REG-18 within the stipulated time frame



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