Cancellation Of GST Registration Procedure

A person who is currently registered under any of the existing laws (Central Excise, Service Tax, VAT, etc.) but is no longer required to be registered under the GST Act may apply electronically for cancellation of registration in FORM GST REG-29 at the common site by December 31, 2017. After performing any necessary investigations, the Superintendent of Central Tax shall revoke the aforementioned registration.
Cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as applicable, is treated as cancellation of registration under the Central Goods and Services Tax Act.
If the Superintendent of Central Tax has reason to believe that a person's registration is liable to be cancelled, he will be served with a notice in FORM GST REG-17 requiring him to show cause why his registration should not be cancelled within seven working days of the date of service of such notice.
The registered person must respond to the show-cause notice issued in FORM REG18 within seven working days.
If the response to the show-cause notice is adequate, the Superintendent of Central Tax will dismiss the matter and issue an order in FORM GST REG –20.
However, if the person who has applied for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the Superintendent of Central Tax will, within thirty days of the date of application or, as the case may be, the date of the reply to the show cause issued, 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.
The registered person whose registration is cancelled must pay an amount equal to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation, or the output tax payable on such goods, whichever is greater.
In the event of capital goods or plant and equipment, the taxable person must pay a sum equivalent to the input tax credit claimed on the said capital goods or plant and machinery, less any percentage points prescribed, or the tax on the transaction whichever is greater, the value of such capital goods or plant and machinery under section 15.
The cancellation of registration does not affect the person's duty to pay tax and other dues for any time before the date of cancellation, whether determined before or after the date of cancellation.