How to Cancel GST Registration: REG-16, REG-19 and the Final Return GSTR-10 (2026)

When can you cancel GST registration?

A registered person can apply to cancel the GSTIN (Section 29(1)) when, for example:

• the business is closed or discontinued;
• the business is sold, merged or transferred, or the proprietor has died;
• the constitution changes so that a new PAN is needed (e.g. proprietorship becomes a company);
• you registered voluntarily and are no longer liable to be registered (turnover below the threshold).

Step 1 — Apply in REG-16

Path: Services → Registration → Application for Cancellation of Registration. File REG-16 within 30 days of the event. The form asks for:

• the reason and the date from which cancellation is sought;
• details of closing stock — inputs, semi-finished goods, finished goods and capital goods — and the ITC on them;
• the tax payable on that stock, and the verification with DSC or EVC.

Step 2 — Pay tax on closing stock (Section 29(5))

ITC was taken on the stock you still hold, but there will be no taxable sale. So you must pay back an amount equal to the ITC on that stock (or the output tax on it, whichever is higher). For capital goods, the ITC is reduced by 5 percentage points per quarter of use.

Example: closing stock of goods with ITC of ₹18,000 (CGST ₹9,000 + SGST ₹9,000) → ₹18,000 is payable, first from the credit ledger, the rest in cash.

Step 3 — The officer's order: REG-19

The proper officer cancels the registration in REG-19, normally within 30 days. If the application is incomplete, a notice may be issued first. The order date matters — it starts the clock for the final return.

Step 4 — File the final return GSTR-10

Point	Rule
Who files	Every taxpayer whose registration is cancelled — except composition dealers, ISDs, non-resident taxable persons, TDS deductors and TCS collectors
Due date	Within 3 months of the date of cancellation or the date of the cancellation order, whichever is later
Late fee	₹100 CGST + ₹100 SGST per day (Section 47), capped at ₹5,000 each
Nothing in stock?	GSTR-10 is still required

Also file every pending GSTR-1 and GSTR-3B up to the cancellation date. If GSTR-10 is not filed, the officer can issue a notice and then an assessment order.

When the officer cancels on his own (suo moto)

If returns are not filed for a long period, or the business does not exist at the registered address, the officer can start cancellation himself:

1. REG-17 — show cause notice.
2. REG-18 — your reply within 7 working days. If accepted → REG-20 drops the proceedings.
3. Otherwise REG-19 — cancellation order.
4. REG-21 — application for revocation within 90 days of the order, after filing the pending returns and paying dues. If accepted → REG-22, and the GSTIN is active again.

Checklist before you apply

• All returns filed up to the date of cancellation.
• Closing stock valued, ITC on it calculated.
• Cash in the ledger for the stock tax and any late fee.
• Calendar reminder for GSTR-10 (3 months).

Practise the whole path

The GST Practice Lab takes one business through REG-16, REG-19 and GSTR-10, and another GSTIN through REG-17 → REG-18 and REG-21 → REG-22 — with the same screens and OTP steps as the portal, on a safe copy.