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Suo Moto cancellation of GST Registration

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Suo Moto cancellation of GST Registration
Rajeev Jain By: Rajeev Jain
March 4, 2023
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Section 29(2) (c) of CGST / SGST Act deals with the provisions with respect to suo moto cancellation of GST registration of a registered person under GST by the proper officer on his own initiative.

As per sec 29(2)(c) of the CGST Act, the proper officer may, cancel the registration of a person from such date, including retrospective date (i.e. earlier date), as he may deem fit, where there is a person under normal scheme has not furnished returns for continuous period of 6 months.

The Hon’ble Kerala High Court  in M/S. PHOENIX RUBBERS VERSUS THE COMMERCIAL TAX OFFICER, THE COMMISSIONER OF STATE GST, ADDL. R3. THE COMMISSIONER, OFFICE OF THE COMMISSIONER OF CENTRAL GST, CENTRAL EXCISE AND CUSTOMS, ADDL. R4. THE SUPERINTENDENT PALAKKAD SOUTH RANGE, OFFICE OF THE SUPERINTENDENT, CENTRAL TAX AND CENTRAL EXCISE - 2020 (3) TMI 477 - KERALA HIGH COURT while setting aside the order cancelling the registration, held that Sec 29(2)(c) mandates that power for cancellation of registration in case where there is continuous six month’s default on the part of the assessee in filing the returns. Since the competent official is obliged to issue a notice before he passes final orders, it goes without saying that the requirement of 6 months’ continuous period should be fulfilled both at the time of issuance of the above said notice in terms of the proviso to sec 29(2) of the CGST Act read with rule 22 of the CGST Rules, but also at the stage of passing the final order cancelling the registration as per sec 29(2)(c).

There can be several reasons for the Suo Moto cancellation of GST registration by the authorities. Some of the common reasons are Non-filing of GST returns for a continuous period of 6 months or more, Issuance of fake invoices or bill without the supply of goods or services, Failure to deposit collected tax amount with the government within 3 months, Failure to pay tax, interest, or penalty to the government within 3 months, Found guilty of any misconduct under GST Law, Discontinuation or transfer of business Registration obtained through fraudulent means, Death of sole proprietor, Non-filing of GST returns by composition taxpayers for 3 consecutive tax periods, If any of the situations arise, the authorities/proper officer may cancel the GST registration of the taxpayer on their own.

Procedure for revocation of suo moto cancellation:

  1. Revocation of GST registration can be applied for within 30 days from the date of service of order of cancellation, but only if the cancellation was done by the proper officer on his own motion.
  2. Application for revocation needs to be made in FORM GST REG-21, either directly or through a facilitation centre.
  3. Online revocation can be done through the GST Portal by following the required steps and attaching supporting documents.
  4. The proper officer will pass an order revoking the cancellation of registration in FORM GST REG-22 if satisfied with the reason provided.
  5. If the officer is not satisfied, a notice in FORM GST REG-23 will be issued, and the applicant needs to furnish a suitable reply in FORM GST REG-24 within 7 working days.
  6. UIN Holders, GST Practitioners, or those whose registration was cancelled on their own request or that of their legal heir are ineligible for revocation of cancelled registration.


By: Rajeev Jain - March 4, 2023



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