Taxation · Registration

Amendment, Cancellation and Revocation of GST Registration

Updated 4 October 2026 · Fact-checked

Under the CGST Act, a registrant must report changes in registration particulars (Section 28). Registration can be cancelled by the proper officer or on the taxpayer's application (Section 29). If the officer cancelled it, the person can apply for revocation within 30 days (Section 30). On cancellation, ITC on stock and capital goods must be paid back.

Understand Amendment, Cancellation and Revocation of Registration

Registration is not a one-time event. Details change, businesses close, and officers act against non-compliant persons. The CGST Act handles this with three linked provisions: amendment (Section 28), cancellation (Section 29) and revocation (Section 30).

Amendment. If any detail in your registration application changes, you must inform the proper officer in the prescribed form within 15 days of the change. Changes to core particulars, such as legal or trade name, principal or additional places of business, and partners or directors, need the officer's approval. Non-core details such as mobile number or email are updated after verification. A change that alters the PAN, such as a proprietor starting a company, is not an amendment. It needs a fresh registration.

Cancellation. It can happen in two ways. The registered person (or legal heirs after death) can apply when the business is discontinued, transferred fully, merged or demerged, the constitution changes, or the person is no longer liable to be registered. Or the proper officer can cancel on his own motion. Grounds include contravention of prescribed provisions, a composition person not filing returns for three consecutive tax periods, a regular person not filing for a continuous period of six months, voluntary registrants who did not start business within six months, and registration obtained by fraud, wilful misstatement or suppression of facts. The officer must give an opportunity of being heard before cancelling. The proper officer may cancel the registration with retrospective effect, from a date he decides, so the cancellation date can be earlier than the date of the order.

Revocation. If the officer cancelled your registration on his own motion, you can ask him to restore it. You must apply within 30 days of the cancellation order being served. The officer decides within 30 days of the application. The 30-day period can be extended by the senior officers, but only if they are satisfied that there is sufficient cause for the delay. Revocation is not available when you yourself applied for cancellation.

Consequences. Cancellation does not wipe out your liability to pay tax and dues for the period before cancellation. A regular registered person must also pay an amount equal to the ITC on inputs held in stock, inputs in semi-finished or finished goods, and capital goods, or the output tax on them, whichever is higher. This is worked out on the stock held on the day immediately preceding the date of cancellation. The Section 29(5) payment does not apply to a composition taxpayer. A composition taxpayer pays under Section 18(4) instead. You must file a final return as well.

Key rules to remember

Amendment timeline: Inform proper officer of change in particulars within 15 days of the change (Section 28); Core changes need officer approval. A change in PAN needs a fresh registration, not an amendment.
Cancellation by officer: procedure: Show-cause notice (REG-17) → reply within 7 working days (REG-18) → order within 30 days of reply (REG-19); A hearing opportunity is mandatory. If proceedings are dropped, the officer passes an order in REG-20.
Revocation time limit: Apply within 30 days of service of cancellation order; extendable by 30 days (Additional/Joint Commissioner) and a further 30 days (Commissioner), only if satisfied there is sufficient cause; Only for cancellation by the officer on his own motion. Form REG-21; officer decides within 30 days. No extension is available without sufficient cause.
ITC payable on cancellation: Higher of (ITC on stock and capital goods) or (output tax on those goods); Applies to inputs in stock, inputs in semi-finished or finished goods, and capital goods or plant and machinery, on the day immediately preceding the date of cancellation. Paid by debit to the electronic credit or cash ledger. The Section 29(5) payment does not apply to composition taxpayers, who pay under Section 18(4) instead.
Capital goods ITC reduction: ITC remaining = ITC taken × (100 − 5 × number of quarters) ÷ 100; Count each quarter or part of a quarter from the invoice date to the cancellation date. Compare with tax on the transaction value of the asset and pay the higher.
Final return: GSTR-10 within 3 months of the date of cancellation or the date of the cancellation order, whichever is later; Not required from ISDs, non-resident taxable persons and persons deducting TDS or collecting TCS. Composition persons must file it.

How to solve Amendment, Cancellation and Revocation of Registration questions

Use this method for any question on amendment, cancellation or revocation. Answer in provision-facts-conclusion format.

1Identify what is asked: amendment, cancellation, revocation, or consequences. Note who acts (taxpayer or officer).
2State the provision in plain words: Section 28 for amendment, Section 29 for cancellation, Section 30 for revocation.
3Match the facts to a ground. For officer cancellation, check the period of default: three consecutive tax periods for composition, six continuous months for regular persons, six months for non-starting voluntary registrants.
4Check procedure: show-cause notice, 7 working days to reply, hearing, order within 30 days. A cancellation without hearing is a defect.
5For revocation, check who cancelled. Officer-cancelled: 30 days from service of order, with extensions of up to 30 days each by the senior officers, granted only on sufficient cause. Self-applied: no revocation.
6For consequences, first check the type of registrant. A regular person pays under Section 29(5); a composition person pays under Section 18(4) instead. Then compute the ITC to be paid, separately for stock and for capital goods, taking the higher in each case.
7Write a one-line conclusion giving the answer with the amount or date.

Quickest way: MCQ elimination and written format for registration changes

When to use it: Use under time pressure, for both the 30 marks of MCQs and the 70 marks of descriptive answers.

MCQ: look for the number. 15 days means amendment. 30 days means revocation. 3 months means GSTR-10. Six months means non-filing for regular persons or non-starting of voluntary business. Three tax periods means composition.
MCQ: if the question says the taxpayer applied for cancellation, eliminate any option that offers revocation.
MCQ on ITC: pick the 'higher of' option. Eliminate options that say 'lower of' or 'only ITC'.
Written: open with the section, then facts, then conclusion. Even one line of law earns marks.
Written numerical: show stock ITC, output tax, higher figure, then capital goods quarter count, remaining ITC, tax on transaction value, higher figure, then total.
Dates: count 30 days carefully from the date of service of the order, and state each extension separately along with the sufficient cause condition.

Common mistakes in Amendment, Cancellation and Revocation of Registration

Saying revocation is available after a taxpayer's own cancellation application.
Students remember 'cancelled, so revoke' without checking who initiated it.
Fix: Revocation applies only where the proper officer cancelled on his own motion. If you applied, you need fresh registration.
Mixing up the 15-day, 30-day and 6-month periods.
Registration has many time limits and they are learned as a jumble.
Fix: Tie each number to one event: 15 days to report changes, 30 days to seek revocation, 6 months of non-filing for cancellation of a regular person.
Paying ITC only on capital goods, or only on stock.
Students recall only one limb of the rule.
Fix: The payment covers inputs in stock, inputs in semi-finished and finished goods, and capital goods. Compute each, then add.
Reducing capital goods ITC by a flat 5% per year, or ignoring part quarters.
The 5% figure is remembered but not its basis.
Fix: Reduce by 5 percentage points for every quarter or part of a quarter from the invoice date. Compare with tax on the transaction value and pay the higher.
Treating a change of constitution that changes PAN as an amendment.
Students assume every change can be updated under Section 28.
Fix: A change of PAN means a different person. Cancel the old registration and take a new one.
Believing cancellation ends all past liability.
The word 'cancel' sounds like a clean exit.
Fix: Cancellation operates from the effective date. Tax, interest and penalty for the earlier period remain payable.
Applying the Section 29(5) ITC payment to a composition taxpayer, or assuming an extension of the revocation period is automatic.
Students apply one rule to every registrant and forget the conditions attached to it.
Fix: Section 29(5) covers regular registered persons; a composition taxpayer pays under Section 18(4). Extensions of the revocation period are granted only when the officer is satisfied there is sufficient cause.

Worked examples

Example 1

Ravi Traders, a regular registered person, applies for cancellation as it is closing the business. On the day before cancellation it holds inputs in stock with ITC of ₹1,20,000 (output tax on these inputs would be ₹1,05,000). It also holds a machine bought 8 months earlier with ITC of ₹90,000. GST on the transaction value of the machine is ₹72,000. Compute the amount payable on cancellation.

Show the solution

Inputs in stock: ITC taken is ₹1,20,000. Output tax on them is ₹1,05,000. The higher is ₹1,20,000.
Machine: 8 months from the invoice date is 2 full quarters plus part of a third, so 3 quarters. Reduction is 3 × 5 = 15 percentage points.
ITC remaining on the machine = ₹90,000 × 85% = ₹76,500.
Tax on transaction value of the machine is ₹72,000. The higher is ₹76,500.
Total payable = ₹1,20,000 + ₹76,500 = ₹1,96,500, by debit to the electronic credit or cash ledger.
Ravi must also file the final return GSTR-10 within 3 months of the cancellation date or order date, whichever is later.

Answer: ₹1,96,500 is payable on cancellation, plus the final return in GSTR-10.

Example 2

The proper officer cancelled the registration of Meera & Co., a regular taxpayer, for not filing returns for 6 continuous months. The order was served on 10 March 2027. The firm now wants its registration back. Can it apply on 20 May 2027? What must it do?

Show the solution

Cancellation was by the officer on his own motion, so revocation under Section 30 is available.
The basic limit is 30 days from service of the order: up to 9 April 2027.
The Additional or Joint Commissioner can extend by up to 30 days, to 9 May 2027. The Commissioner can extend by a further 30 days, to 8 June 2027. Each extension is granted only if the officer is satisfied that there is sufficient cause for the delay.
20 May 2027 falls in the second extension window, so the application is possible only if the Commissioner is satisfied that there is sufficient cause and allows the extension.
As the cancellation was for non-filing, the firm should file the pending returns and pay tax, interest and late fee due.
The officer decides within 30 days of the application. He may revoke, or reject by a written order with reasons after giving a hearing.

Answer: Yes, but only if the Commissioner extends the time after being satisfied that there is sufficient cause. Without an extension the last date was 9 April 2027. The firm must file pending returns and clear dues. The application is in Form REG-21.

Exam tips

Always state who initiated cancellation. It decides whether revocation is available.
Memorise the grounds by registrant type: composition (three consecutive tax periods), regular (six continuous months), voluntary (six months without starting business), fraud (any registrant).
In a numerical, show each head of ITC separately and write 'whichever is higher' in your working. This earns step marks.
For capital goods, write the quarter count explicitly: months elapsed, quarters or part, percentage reduction.
Mention the hearing opportunity in any answer on officer cancellation. Examiners look for it.
In a revocation date question, state that extensions beyond 30 days need sufficient cause. In an ITC question, check whether the person is a composition taxpayer before applying Section 29(5).

Practice questions from Registration

Amendment, Cancellation and Revocation of Registration in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Amendment, Cancellation and Revocation of Registration: frequently asked questions

What are the main grounds for cancellation of GST registration under Section 29?

The taxpayer can apply when the business is discontinued, transferred, merged, changes constitution, or no longer needs registration. The officer can cancel for contravention of prescribed provisions, non-filing of returns for the stated periods, not starting business after voluntary registration, or registration obtained by fraud or suppression of facts. A hearing must be given first.

What is the time limit to revoke a cancelled GST registration?

You must apply within 30 days of service of the cancellation order. The Additional or Joint Commissioner can extend it by up to 30 days and the Commissioner by a further 30 days, but only if satisfied that there is sufficient cause. The officer then decides within 30 days of the application.

Do I have to reverse ITC when my registration is cancelled?

Yes, if you are a regular registered person, for inputs held in stock, inputs in semi-finished or finished goods, and capital goods. You pay the higher of the ITC on them or the output tax on them, worked out on the day before cancellation. Capital goods ITC is reduced by 5 percentage points for each quarter or part of a quarter since the invoice date. A composition taxpayer does not pay under Section 29(5) and pays under Section 18(4) instead.

Can I update my mobile number or address after getting GST registration?

Yes, under Section 28 you must inform the officer of any change in particulars within 15 days. Changes to core fields like business name or address need officer approval. Non-core fields such as mobile number and email are updated after verification.