THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
REGISTRATION
Section 29:
Cancellation
1[or
suspension] of
registration.
(Relevant Rule 20 to 22 &
Rule 44)
(1) The proper officer may, either on his own motion or on an
application filed by the registered person or by his legal heirs, in case of
death of such person, cancel the registration, in such manner and within such
period as may be prescribed, having regard to the circumstances where,––
(a) the business has been discontinued, transferred fully for any reason
including death of the proprietor, amalgamated with other legal entity,
demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
2[(c)
the taxable person is no longer liable to be registered under
section 22 or
section 24 or intends to optout of the registration voluntarily made under
sub-section (3) of section 25]
[helldod old (c) the taxable person, other than the person registered under sub-section (3)
of section 25, is no longer liable to be registered under
section 22 or
section
24.]helldod]
1[Provided
that during pendency of the proceedings relating to cancellation of registration
filed by the registered person, the registration may be suspended for such
period and in such manner as may be prescribed.]
(2) The proper officer may cancel the registration of a person from such date,
including any retrospective date, as he may deem fit, where,––
(a) a registered person has contravened such provisions of the Act or the rules
made there under as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three
consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not
furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of
section 25 has not commenced business within six months from the date of
registration; or
(e) registration has been obtained by means of fraud, wilful
misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without
giving the person an opportunity of being heard.
1[Provided
further that during pendency of the proceedings relating to cancellation of
registration, the proper officer may suspend the registration for such period
and in such manner as may be prescribed.]
(3) The cancellation of registration under this section shall not affect the
liability of the person to pay tax and other dues under this Act or to
discharge any obligation under this Act or the rules made thereunder for any
period prior to the date of cancellation whether or not such tax and other dues
are determined before or after the date of cancellation.
(4) The cancellation of registration under the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, shall be
deemed to be a cancellation of registration under this Act.
(5) Every registered person whose registration is cancelled shall pay an
amount, by way of debit in the electronic credit ledger or electronic cash
ledger, equivalent to the credit of input tax in respect of inputs held in
stock and inputs contained in semi-finished or finished goods held in stock or
capital goods or plant and machinery on the day immediately preceding the date
of such cancellation or the output tax payable on such goods, whichever is
higher, calculated in such manner as may be prescribed:
Provided that in case of capital goods or plant and machinery, the taxable
person shall pay an amount equal to the input tax credit taken on the said
capital goods or plant and machinery, reduced by such percentage points as may
be prescribed or the tax on the transaction value of such capital goods or
plant and machinery under section 15, whichever is higher.
(6) The amount payable under sub-section (5) shall be calculated in such manner
as may be prescribed.
1. Inserted Vide: Section 14 of CGST Amendment Act 2018 vide Notification No. 02/2019 – Central Tax (w.e.f. 01.02.2019)
2. Substituted Vide: Section 121 of Finance Act 2020 vide Notification No. 92/2020 - Central Tax (w.e.f. 01.01.2021)