Cancel GST registration in India when your business is closed, turnover drops below the threshold, or GST is no longer applicable to your operations.
Many businesses continue GST registration unnecessarily and later face late fees, notices, or compliance pressure. Cancelling GST properly ensures you stay legally safe and avoid future penalties.
This guide explains how to cancel GST registration in India step by step, including eligibility, documents required, online process, common mistakes, penalties, and expert support.
Before applying for GST cancellation, it is important to understand when GST registration is mandatory and when it is not.
Table of Contents
When Is GST Cancellation Required in India?
You must cancel GST registration in India if any of the following conditions apply:
- Your business is permanently closed
- Your annual turnover falls below GST exemption limit
- You voluntarily registered but GST is no longer required
- Business constitution has changed
- GST registration was taken incorrectly
Failing to cancel GST registration on time can lead to penalties and legal notices.
The GST portal allows cancellation to be completed fully online. However, all pending returns must be filed before submitting the cancellation request. If returns are pending, the portal will not allow submission.
Who Can Apply for GST Cancellation?
GST cancellation can be initiated by:
- Business owner (voluntary cancellation)
- Legal heirs (in case of death)
- GST officer (suo moto cancellation)
GST officers may cancel registration due to non-filing of returns, fake invoices, or compliance violations.
Types of GST Cancellation in India
There are two main types of GST cancellation:
1️⃣ Voluntary Cancellation
Applied by the taxpayer through GST portal.
2️⃣ GST Officer Cancellation
Initiated by department due to non-compliance.
Always prefer voluntary cancellation to avoid penalties.
Documents Required for GST Cancellation
You’ll need the following documents:
- GST login credentials
- Aadhaar of authorized signatory
- Business closure proof (if applicable)
- Final GST return details
- Bank account details
Make sure all GST returns are filed before applying.
How to Cancel GST Registration Online (Step-by-Step)
- Login to gst.gov.in
- Go to Services → Registration → Application for Cancellation
- Select reason for cancellation
- Enter required details
- Submit application using DSC / EVC
- Track status on GST portal
- GST cancellation is usually approved within 7–15 working days.
Common GST Cancellation Mistakes to Avoid
Avoid these common errors:
- Final return not filed
- Incorrect reason selected
- Outstanding tax dues
- Wrong bank details
Mistakes can lead to rejection or delayed cancellation.
Most GST cancellation rejections happen due to incomplete compliance. Filing final returns, clearing dues, and selecting the correct reason are critical for approval.
Penalty for Not Cancelling GST Registration
If GST registration is not cancelled on time:
- Tax notices are issued
- Late fees accumulate
- Penalties may apply
- GST officer may cancel forcibly
Timely cancellation avoids unnecessary compliance burden.
Official GST Rules for Cancellation
The GST cancellation process and legal conditions are governed by official GST rules. You can also refer to the government portal for official guidelines.
Need Help with GST Cancellation in India?
GST cancellation can be confusing if returns or documents are pending.
LocalGrow Digital provides end-to-end GST cancellation assistance, ensuring compliance and peace of mind.
You May Also Find These GST Guides Helpful
These detailed GST guides will help you understand registration, compliance, and risks before cancellation.
1️⃣ GST Registration Without Business Address
2️⃣ Documents Required for GST Registration
3️⃣ Selling Without GST on Amazon, Flipkart or Meesho
Frequently Asked Questions on GST Cancellation
How can I cancel GST registration in India?
You can cancel GST registration in India online through the GST portal by submitting an application for cancellation after filing all pending GST returns and clearing any outstanding tax dues.
When is GST cancellation mandatory in India?
GST cancellation is mandatory when a business is permanently closed, turnover falls below the exemption limit, GST registration was taken by mistake, or business constitution changes.
Can GST registration be cancelled online?
Usually 7–15 working days after successful submission.
Can GST be cancelled voluntarily?
Yes, GST registration can be cancelled completely online through the official GST portal without visiting any GST office, provided compliance requirements are fulfilled.
How long does GST cancellation take after applying?
GST cancellation usually takes 7 to 15 working days after successful submission of the cancellation application on the GST portal.
Is there any penalty for not cancelling GST registration?
Yes, failure to cancel GST registration can lead to late fees, tax notices, penalties, and forced cancellation by the GST department.
Can GST registration be cancelled voluntarily?
Yes, taxpayers can apply for voluntary GST cancellation if GST is no longer required for their business operations.
Can GST be cancelled if returns are pending?
No, GST cancellation cannot be processed unless all pending GST returns are filed and outstanding tax liabilities are cleared.
What documents are required for GST cancellation?
GST cancellation requires GST login credentials, Aadhaar authentication of the authorized signatory, business closure details (if applicable), and final return information.
What is final GST return and is it mandatory?
Final GST return (GSTR-10) is mandatory after cancellation and must be filed within the prescribed time to avoid penalties.
Can GST officer cancel my registration without my consent?
Yes, GST officers can cancel registration suo moto due to non-filing of returns, fake invoicing, or violation of GST rules.
Can GST registration be reactivated after cancellation?
GST registration can be reactivated only in specific cases such as cancellation due to non-filing of returns, and within the allowed time limit.
Does GST cancellation affect PAN or other registrations?
No, GST cancellation does not affect PAN, MSME, FSSAI, or other business registrations.
Is Aadhaar authentication mandatory for GST cancellation?
Yes, Aadhaar authentication is mandatory for submitting GST cancellation applications through the GST portal.
Can a proprietor cancel GST registration without professional help?
Yes, proprietors can cancel GST registration themselves, but professional help is recommended to avoid mistakes and rejection.
Can LocalGrow Digital help with GST cancellation process?
Yes, LocalGrow Digital provides complete assistance for GST cancellation including return filing, application submission, and compliance support.
Can GST cancellation be rejected by the department?
Yes, GST cancellation applications can be rejected if returns are pending, information is incorrect, or tax dues are unpaid. Submitting accurate details and completing compliance reduces rejection risk.
If you are unsure about documents, final returns, or portal errors, professional help can save time and prevent rejection.
GST cancellation is a critical compliance step that should be handled carefully to avoid future penalties or legal issues. Whether your business is closed, inactive, or no longer requires GST, timely cancellation ensures peace of mind and clean compliance records. If you are unsure about eligibility, documents, or final return filing, expert guidance can help you complete the process smoothly and without errors.