GSTN Introduces Revised Process for Electronic Approval of GST Registration Cancellation Applications

GSTN has introduced a revised system-based process for approval of registration cancellation applications filed in FORM GST REG-16, incorporating automated validations under Rule 20 of the CGST Rules, 2017. The system will verify that all returns due up to the effective date of cancellation have been filed, including GSTR-3B where GSTR-1 or IFF has been furnished. Returns that become due subsequently must be filed within their prescribed timelines, failing which the application will be referred to the jurisdictional tax officer. For composition taxpayers, NRTPs, OIDAR taxpayers and ISDs, cancellation will be approved electronically without officer intervention upon timely filing of returns. For regular, casual and SEZ taxpayers, electronic approval will be granted where the output tax liability does not exceed ₹2.5 lakh for each tax period. Where the output tax liability exceeds ₹2.5 lakh in any tax period, FORM GSTR-10 must be filed within 3 days of the prescribed trigger date for electronic approval. Failure to file GSTR-10 within the prescribed timeline will result in referral of the application to the jurisdictional tax officer. Where cancellation is subsequently approved by the tax officer, GSTR-10 must be filed within 90 days from the effective date of cancellation, wherever applicable.

Advisory on the Revised Process for Approval of Registration Cancellation application.pdf