GST cancellation rules FAQs: Application process, approval and changes recommended at 57th Council meeting

The 57th GST Council has recommended changes to simplify GST registration cancellation, including automatic processing of applications and system-based cancellation for certain defaults. What do business owners need to know about the application process and other key deadlines? 

If you are a business owner registered under the Goods and Services Tax (GST) regime, whether running a small enterprise or a large business, you need to know how to cancel your GST registration and comply with the prescribed rules.

The Press Information Bureau (PIB) published a set of Frequently Asked Questions (FAQs) on cancellation of GST registration on Friday.

The FAQs explain the cancellation process, application deadlines, automatic acceptance and cancellation of registration, and changes recommended by the GST Council at its 57th meeting on 8 October 2026.

When can you apply for cancellation of GST registration?

You can apply for cancellation if your business has been completely discontinued, closed, or transferred.

Other grounds include a change in the constitution of the business resulting in a new Permanent Account Number (PAN), amalgamation, demerger or disposal of the business, or when you are no longer liable to be registered under GST.

Taxpayers should apply within 30 days of the event warranting cancellation. However, this time limit does not apply when the sole proprietor dies.

How can you cancel your GST registration?

According to the PIB FAQs, taxpayers must submit FORM GST REG-16 online through the official GST portal.

Log in to the official GST portal, go to Services, then Registration, and then Application for Cancellation of Registration, and provide the reason for cancellation, the date from which you want the registration to be cancelled, closing-stock details, and any associated tax liabilities.

Verify and submit the application using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). An Application Reference Number (ARN) will be generated to track its status.