Reasons for Cancellation
Transfer of business or discontinuation of business
Change in the constitution of business. (Partnership Firm may be changed to Sole Proprietorship due to death of one of the two partners, leading to change in PAN)
Persons no longer liable to be registered under Section 22 and 24 (Except when he is voluntarily registered)
Where registered taxable person has contravened provisions of the Act as may be prescribed
A composition supplier has not furnished returns for 3 consecutive tax periods/ any other person has not furnished returns for a continuous period of 6 months
Non-commencement of business within 6 months from date of registration by a person who has registered voluntarily.
Where registration has been obtained by means of fraud, willful statement or suppression of facts, the registration may be cancelled with retrospective effect Rule 22 of the CGST Rules 2017 provides for process of Cancellation of Registration and includes the following:
Cancellation can be done by Proper Officer suo moto or on application made by the registered taxable person;
Retrospective cancellation in case of fraud, wilful misstatement or suppression of fact;
Liability to pay tax before the date of cancellation will not be affected;
Cancellation under CGST Act will be deemed cancellation under SGST Act and viceversa;
Substantial penalty in case registration obtained with fraudulent intentions;
Notice of hearing and opportunity of being heard is a MUST before cancellation