Cancelling your GST registration may be necessary if you’re closing your business, transferring ownership, or no longer meeting the GST turnover threshold. The process has been simplified in 2025, but it’s important to follow the correct steps to avoid penalties. Here’s a complete guide on how to cancel GST registration in 2025 under the latest rules.
When Should You Cancel GST Registration?
You may need to cancel GST registration if:
✔ Business closure (shutting down operations permanently)
✔ Transfer/sale of business (merger, acquisition, or dissolution)
✔ Change in business structure (e.g., switching from sole proprietorship to company)
✔ No longer liable for GST (falling below the ₹20/40 lakh threshold)
✔ Death of sole proprietor (legal heirs must apply for cancellation)
New Rules for GST Cancellation (2025)
The 2025 GST cancellation process has been streamlined with these key updates:
- Faster processing (typically within 15-30 days if no pending dues).
- No physical verification required in most cases (digital approval).
- Auto-populated final return (GSTR-10) for easier compliance.
- Mandatory clearance of tax dues before cancellation.
Documents Required for GST Cancellation
- PAN & Aadhaar of the authorized signatory
- Final GST return (GSTR-10)
- Bank account closure proof (if applicable)
- Business closure proof (Board resolution, dissolution deed, or affidavit)
- Stock statement (details of remaining inventory)
Step-by-Step Process to Cancel GST Registration (2025)
Step 1: Log in to the GST Portal
- Visit https://www.gst.gov.in/
- Go to Services > Registration > Application for Cancellation of Registration
Step 2: Fill Form GST REG-16
- Select the reason for cancellation (business closure, transfer, etc.)
- Enter the date of closure (must be within 30 days of application)
- Upload supporting documents (closure proof, bank statement, etc.)
Step 3: Submit & Generate ARN
- After submission, an Application Reference Number (ARN) will be issued.
- Track status via Services > Track Application Status.
Step 4: Clear All Pending Dues
- Pay any pending GST, interest, or penalties before approval.
- File GSTR-10 (Final Return) within 3 months of cancellation.
Step 5: Receive Cancellation Order
- If approved, you’ll get a GST cancellation order (Form GST REG-19).
- The GSTIN will be deactivated, and no further filings will be required.
What Happens After GST Cancellation?
- No more GST filings required.
- Input Tax Credit (ITC) reversal may apply on remaining stock.
- Business cannot charge GST after cancellation.
Conclusion
Cancelling GST registration in 2025 is a simple online process if you follow the correct steps. Ensure all dues are cleared, file your final return (GSTR-10), and submit the cancellation request via the GST portal.