Rule 20 of CGST Rules 2017: Application for Cancellation of Registration

Provisions under Rule 20 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Application for Cancellation of Registration”, are as under:

CGST Rule 20: Application for Cancellation of Registration (Chapter-III: Registration Rules) 

A registered person, other than a person to whom a registration has been granted under rule 12 or a person to whom a Unique Identity Number has been granted under rule 17, seeking cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG 16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, at the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner.

Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration.

Related Posts:

CBIC Clarifications on GST Registration Cancellation Procedure

Section 29 of CGST Act 2017: Cancellation or Suspension of Registration

Amendments History:

1. Proviso to CGST Rule 20 omitted vide Central Tax Notification 3/2018 dt. 23/01/2018.

Commentary on CGST Rule 20

CGST Rule 20 outlines the procedure for any registered taxpayer (except those registered under rule 12 or granted a Unique Identity Number under Rule 17) who seeks to cancel their registration under sub-section (1) of section 29.

The cancellation procedure necessitates the submission of an online application, in FORM GST REG-16, via common GST portal within thirty days from the event triggering the cancellation. This application must consist of detailed data on inputs held as stock, semi-finished or completed goods held as stock, and capital goods held in stock on the date from which the cancellation is sought. The underlying liability and any payments made against this liability should also be included.

Alongside the application, applicants may need to provide relevant documents supporting their case. The application can be made online directly or via a notified Facilitation Centre. By complying with this regulation, registered persons businesses can appropriately and lawfully cancel their GST registration, given they meet the specified conditions.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.