(1) A registered person seeking cancellation of registration under sub-section (1) of section 29 shall within a period of thirty days from the occurrence of the event warranting the cancellation submit an application in FORM GST REG-16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and capital goods held in stock on the day immediately preceding the date of application for cancellation or on the day immediately preceding the date from which the cancellation of registration is sought, as the case may be, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof, on the common portal.

Provided that the requirement to submit the application within thirty days of occurrence of event warranting cancellation shall not be applicable in the event of death of a sole proprietor

(2) No application under sub-rule (1) shall be submitted unless, -

(a) as on the date of submission of such application, all returns including statements in FORM GST CMP-08, where applicable, required to be furnished on or before that date in respect of any period ending on or before the date from which the cancellation is sought, have been furnished; and

(b) the details of outward supply in FORM GSTR-1 or Invoice Furnishing Facility of a tax period has been furnished, the return in FORM GSTR-3B for the that tax period, has also been furnished.

Illustration 1: A registered person comes to file an application for cancellation of registration on 13.07.2026, he is required to filed return in FORM GSTR-3B for the month of May, 2026.

Illustration 2: Where a registered person has furnished the details of outward supplies for the tax period in FORM GSTR-1 on 11.07.2026 for the month of June, 2026, he shall be required to file the return in FORM GSTR-3B for the month of June, 2026, before submitting the application for cancellation of registration.

(3) On submission of the application for cancellation under sub-rule (1), the registered person shall furnish the return, including statements in FORM GST CMP-08, where applicable, for the remaining period upto the date of submission of the application or the date from which cancellation is sought, as the case may be, not later than the due date of furnishing such returns.

(4) On submission of application for cancellation under sub-rule (1), the registration of the person shall stand suspended till the completion of the cancellation proceedings.

(5) Where an application for cancellation of registration is filed under sub-rule (1) and the returns referred to in sub-rule (2) and sub-rule (3) have been furnished within the time specified therein and tax, interest, fee or penalty or any other amount which is liable to be paid has been paid and in cases where –

(a) the output tax liability on account of central tax and State tax or Union territory tax integrated tax and compensation cess, declared by the registered person in the details of outward supplies in FORM GSTR-1, as amended in FORM GSTR-1A, if any, or using the Invoice Furnishing Facility in respect of supply made to registered persons, does not exceed two lakh fifty thousand rupees in any of the months from the date of registration till the date of submission of application for cancellation under sub-rule (1); or

(b) the registered person has filed return in FORM GSTR-10 within 3 days from the due date of furnishing the returns referred to sub-rule (3), wherever applicable,

the registration shall be cancelled electronically by the common portal with effect from the date from which the cancellation of registration is sought and the same shall be communicated electronically to the said person in FORM GST REG-38.

(6) Where any of the returns or statements in FORM GST CMP-08, where applicable, referred to in sub-rule (3) or clause (b) of sub-rule (5) have not been furnished or tax, interest, fee or penalty or any other amount which is liable to be paid, has not been paid, the application shall be forwarded to the proper officer for examination.

(7) On examination of the application under sub-rule (6), where the proper officer is satisfied that the application, -

(a) is in order, the proper officer shall cancel the registration within a period of fifteen days from the date of receipt of the application under sub-rule (6) and shall cancel the registration and issue an order, which shall be communicated electronically to said person in FORM GST REG-19.

(b) is deficient, the proper officer may communicate such deficiencies by issuing a notice to the applicant electronically in FORM GST REG-03 within a period of fifteen days from the date of receipt of the application under subrule (6).

(8) On receipt of notice under clause (b) of sub-rule (7), the applicant shall furnish the returns, clarification, information or documents electronically, as applicable, in FORM GST REG-04, within a period of fifteen days from the date of the receipt of said notice.

(9) Where the proper officer is satisfied with the reply furnished by the applicant under subrule (8), the proper officer may within a period of fifteen days from the date of the receipt of the reply, approve the application and issue an order for cancellation of registration in FORM GST REG-19.

(10) Where the proper officer is not satisfied with the reply furnished under sub-rule (8), the proper officer may within a period of fifteen days from the date of receipt of the reply, reject such application and the rejection the same shall be communicated electronically to said person in FORM GST REG-05.

(11) Where reply has not been furnished by the applicant under sub-rule (8) within the time specified therein, the application shall be deemed to be rejected and the rejection shall be communicated electronically to said person in FORM GST REG-05A.

(12) Where the proper officer fails to take any action, -

(a) within a period of fifteen days from the date of receipt of the application under sub-rule (6); or

(b) within a period of fifteen days from the date of the receipt of reply furnished by the applicant under sub-rule (8),

the application for cancellation of registration shall be deemed to be approved and the same shall be communicated electronically in FORM GST REG-19.

(13) The provisions of this rule shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.

(14) Where, after cancellation of the registration under this rule, the proper officer has reasons to believe that the effective date of cancellation of registration is liable to be changed to an earlier date in terms of the provisions of sub-section (3) of section 29, the proper officer may, issue a notice in FORM GST REG-34 requiring to show cause, why the effective date of cancellation of the registration shall not be changed to an earlier date.

(15) The person shall furnish reply in FORM GST REG-35 to the show cause notice issued under sub-rule (14) within a period of thirty days from the date of receipt of the said notice.

(16) Where the proper officer is satisfied with the reply furnished under sub-rule (15), the proper officer shall within a period of thirty days from the date of receipt of the reply, drop the proceedings and pass an order in FORM GST REG-36.

(17) Where the proper officer is not satisfied with the reply furnished under sub-rule (15), the proper officer may change the effective date of cancellation of registration and shall issue an order in FORM GST REG-37 within a period of thirty days from the date of receipt of the reply.

(18) Where reply to notice issued under sub-rule (14) has not been furnished within a period of thirty days from the date of issuance of such notice in accordance with sub-rule (15), the proper officer may change the effective date of cancellation of registration and shall issue an order in FORM GST REG-37 within a period of sixty days from the date of issuance of notice under sub-rule (14).

(19) Where the proper officer fails to issue an order within a period of sixty days from the date of issuance of notice under sub-rule (14), the proceedings for change in effective date of cancellation shall be deemed to be dropped and the same shall be communicated electronically on the common portal in FORM GST REG-36.

(20) The effective date of cancellation once changed under this rule shall not be subject to further change.