Rule 22 of ‘Central Goods and Services Tax (CGST) Rules 2017’: Cancellation of Registration
Provisions under Rule 22 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Cancellation of Registration”, are as under:
CGST Rule 22: Cancellation of Registration (Chapter-III: Registration Rules)
(1) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled.
(2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM GST REG-18 within the period specified in the said sub-rule.
(3) Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under [
sub-rule (1) of rule 20]$1 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under subsection (5) of section 29.
(4) Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20.
[Provided that where the person instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b) or clause (c) of sub-section (2) of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST-REG 20] $2
(5) The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.
$1. In sub-rule (3), the words, brackets and figure “sub-rule (1) of” omitted; vide Notification No. 7/2017 Central Tax dt. 27 June 2017 w.e.f. 22 June 2017.
$2. Inserted vide Notification No. 39/2018 Central Tax dt. 4 Sept. 2018
Above information is based on Updated Compilation of “CGST Rules 2017” (as amended upto 9 Oct. 2018) shared by CBIC (i.e. as notified/ amended upto 9 Oct. 2018 by the CBIC). For detailed/ official information and/or subsequent updates, please refer relevant Notifications.
It may be noted that CGST Rules 1 to 26 (pertaining to Chapters on Preliminary/ Composition/ Registration matters) were initially notified by CBIC (CBEC) vide Notification No. 3/2017 Central Tax dt. 19 June 2017, applicable w.e.f. 22 June 2017 (or as may be specified in respective Rules).