Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The common reasons
By far the most frequent cause is not filing returns for a continuous period — a composition dealer for some periods, or a regular taxpayer for six months. Other grounds include not starting business within the expected time, issuing invoices without actual supply (bill-trading), breaching the Act, or registration obtained by fraud. The department can also act on its own.
The process
Cancellation usually follows a show-cause notice (REG-17), to which you reply (REG-18). If the officer proceeds, an order (REG-19) cancels the registration. Note that cancellation does not erase your past liabilities — returns and dues up to the date still stand. Read the notice for the exact ground cited.
What to do — an example
Example: a business that stopped filing during a slow patch finds its GSTIN cancelled. If it still wants to trade, it must apply for revocation within the time limit, after filing all the pending returns and paying the dues. Letting it lapse means re-registering afresh and losing the old number. Our team can handle the revocation.