Introduction
Imagine this scenario:
You log in to the GST Portal to file your returns or generate an e-way bill, and suddenly you see this alarming status:
“Your GST registration has been cancelled by the tax authorities.”
For many businesses, this is a shocker.
But don’t panic.
In this blog post, I will explain in simple and practical language:
- What is GST Suo Moto Cancellation?
- Why does the GST Department cancel your GSTIN on its own?
- How can you resolve this issue?
- Step-wise guide to file for Revocation of GST Cancellation.
Let’s begin.
What is Suo Moto Cancellation in GST?
First, let’s understand the meaning:
“Suo Moto” is a Latin term meaning “on its own motion”.
So, GST Suo Moto Cancellation means:
Cancellation of your GST Registration by the GST Officer without you applying for it.
It’s done when the GST Department believes that you are not following GST law or are no longer eligible to hold GST registration.
This is covered under Section 29(2) of the CGST Act, 2017, read with Rule 22 of the CGST Rules, 2017.
Common Reasons for Suo Moto Cancellation of GST Registration
Here are the top reasons why the GST officer may cancel your GSTIN suo moto:
| Reason | Explanation |
| 1️⃣ Non-Filing of Returns | Failure to file GST returns like GSTR-3B, GSTR-1, etc. for a continuous period |
| 2️⃣ GSTR-1 and GSTR-3B Mismatch | Declaring sales in GSTR-1 but not paying tax through GSTR-3B |
| 3️⃣ Wrongful ITC Claims / Fake Invoices | Engaging in fake billing or claiming bogus ITC |
| 4️⃣ Non-Existence of Business at Registered Premises | Business not found during physical verification by GST Officer |
| 5️⃣ Fraudulent Registration | If registration was obtained through fraud, misstatement, or suppression of facts |
| 6️⃣ Non-Compliance with GST Laws | Ignoring departmental notices, failing to comply with GST procedural requirements |
Practical Example
Let’s say:
ABC Traders didn’t file their GST returns for the last 6 months.
The GST Portal sent multiple reminders and notices, but they did not respond.
Finally, the GST officer cancelled their GST registration under Suo Moto Cancellation.
How to Avoid Suo Moto Cancellation?
Here are best practices to avoid this situation:
✅ Timely Filing of GST Returns (even if NIL)
✅ Pay GST Dues on Time
✅ Reconcile GSTR-1 with GSTR-3B and GSTR-2B monthly
✅ Keep your Principal Place of Business updated and active
✅ Respond to GST Notices (like REG-17 Show Cause Notice) within the prescribed time
✅ Avoid Wrong ITC Claims
Can I Get My Cancelled GSTIN Restored?
Yes.
The GST law provides an opportunity for taxpayers to get their cancelled registration restored by filing an Application for Revocation of Cancellation.
But remember:
| Condition | Details |
| Timeline | Within 90 days from the date of the Cancellation Order |
| Extension | Allowed further 90 Days only with approval from the GST Commissioner (by applying for Condonation of Delay) |
Step-by-Step Process to File Revocation Application on GST Portal
Here’s a simple guide on How to file GST Revocation Application (REG-21 Form):
✅ Step 1: Login to GST Portal
Visit: https://www.gst.gov.in
Login with your GST User ID and Password
✅ Step 2: Navigate to Revocation of Cancellation Option
Go to:
Services > Registration > Application for Revocation of Cancelled Registration
✅ Step 3: Fill the Application Form REG-21
In the form, fill the following details:
- Reason for Revocation:
Explain the reason clearly. Examples:- “Unable to file returns due to technical issues”
- “Business was temporarily closed due to financial crisis”
- “Missed the compliance due to illness”
- Attachments Required:
Upload the following documents:- Proof of filing pending GST returns
- Payment proof for outstanding tax, interest, and late fees
- Any other supporting documents like electricity bill, site photos (if cancellation was due to address issues)
✅ Step 4: Submit the Application
After filling, submit the application using:
- Digital Signature Certificate (DSC) or
- Electronic Verification Code (EVC) (for proprietors/individuals)
On submission, you will receive an ARN (Acknowledgement Reference Number).
✅ Step 5: Wait for Officer’s Decision
After submission, the GST Officer will review your application.
| Possible Outcome | Description |
| Approval | Officer will issue Order for Revocation (REG-22) and your GSTIN will be restored |
| Rejection | Officer will issue Rejection Order (REG-05) after giving you a chance to explain |
Important Tips to Get Your Revocation Approved
- Clear All Pending Dues: File all backdated returns first.
- Make Full Tax Payments: Pay pending GST, interest, and late fees.
- Attach Proper Documents: Bank statements, site verification photos, payment proofs.
- Be Honest & Clear in Your Reason: Officers appreciate transparency.
What If My Revocation Application Gets Rejected?
If your application is rejected:
- Review the Rejection Order carefully.
- Rectify the reasons for rejection.
- You can file an appeal against rejection under GST Appellate Provisions, or
- File a fresh Revocation Application if permitted.
Final Thoughts
- Suo Moto GST Cancellation is a serious issue but it’s not the end of your business journey.
- Act quickly, file pending compliances, and apply for revocation as soon as possible.
- Going forward, ensure timely GST compliance to avoid such issues.
