Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 29, verbatim (show)
*Section 29. Cancellation 1[or suspension] of registration.-
(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:]
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 thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished 3[the return for a financial year beyond three months from the due date of furnishing the said return]; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a 4[such continuous tax period as may be prescribed]; 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.
* Enforced w.e.f. 22nd June, 2017.
1. Inserted by s. 14 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
2. Substituted for "(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." by s. 121 of the Finance Act, 2020 (No. 12 of 2020) - Brought into force w.e.f. 01st January, 2021 vide Notification No. 92/2020 - C.T., dated 22nd December, 2020.
3. Subtituted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022.) by s. 101 by The Finance Act 2022 (No. 6 of 2022). for "returns for three consecutive tax periods".
4. Subtituted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022.) by s. 101 by The Finance Act 2022 (No. 6 of 2022). for "a continuous period of six months".
Sub-section (1)
29(1)(a) to (c)Business circumstances
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 registrationSection 29(1)(a) to (c)
The listed circumstances cover discontinuance or full transfer, amalgamation, demerger, disposal, constitutional change, loss of section 22 or 24 liability and intended exit from voluntary registration. Cancellation follows the prescribed manner and period. The law does not settle what a change in the business constitution means.
Questions to answer on the file5 questions
29(1), provisoSuspension on the person's application
the registration may be suspended for such period and in such manner as may be prescribed.Section 29(1), proviso
Cancellation proceedings filed by the registered person must be pending. The suspension period and manner follow prescription.
Questions to answer on the fileWho moves the cancellation under sub-section (1)2 questions
Questions to answer on the fileSuspension while the person's own cancellation proceedings are pending3 questions
Sub-section (2)
29(2)(a) to (e)Default-based cancellation
The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fitSection 29(2)(a) to (e)
The grounds cover prescribed contraventions, a composition annual return overdue beyond three months, other prescribed continuous-period return defaults, failure to commence voluntary business within six months and fraudulent registration. The other-return-default limb excludes the composition person in clause (b). The hearing proviso qualifies this power.
Questions to answer on the file8 questions
29(2), first provisoHearing before cancellation
the proper officer shall not cancel the registration without giving the person an opportunity of being heardSection 29(2), first proviso
The officer must offer the hearing before cancellation under sub-section (2). The law does not settle what the opportunity requires.
Questions to answer on the fileCancellation by the proper officer, and from what date5 questions
Questions to answer on the fileThe opportunity of being heard before cancellation2 questions
29(2), second provisoSuspension during proceedings
the proper officer may suspend the registration for such period and in such manner as may be prescribed.Section 29(2), second proviso
Cancellation proceedings must be pending. This officer-led suspension follows the prescribed period and manner.
Questions to answer on the file3 questions
29(3)Earlier liabilities survive
shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligationSection 29(3)
The preservation covers periods before cancellation. It applies whether the tax and dues are determined before or after cancellation.
Questions to answer on the file3 questions
29(4)Linked cancellation
shall be deemed to be a cancellation of registration under this Act.Section 29(4)
Cancellation under the State or Union territory GST Act triggers the deeming. It links that cancellation to this Act.
Questions to answer on the file1 question
29(5) and provisoStock and capital-goods payment
Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledgerSection 29(5) and proviso
Use stock inputs, inputs in semi-finished or finished goods, capital goods or plant and machinery held the preceding day, comparing the specified credit amount with output tax. The higher amount applies. For capital goods or plant and machinery, compare credit after prescribed reduction with tax on section 15 transaction value.
Questions to answer on the file8 questions
29(6)Prescribed calculation
The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.Section 29(6)
The calculation applies to the cancellation payment under sub-section (5). Its capital-goods comparison must also be read with that sub-section's proviso.
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
Frequently asked questions
Does cancellation erase earlier tax obligations?
No. Sub-section (3) preserves earlier-period tax, dues and obligations, including amounts determined after cancellation.
Section 29(3)
Can the officer cancel without a hearing under sub-section (2)?
No. The first proviso requires an opportunity of being heard before cancellation. The law does not settle what that opportunity requires.
Section 29(2), first proviso
How is the capital-goods amount compared?
Compare credit taken after prescribed reduction with tax on transaction value under section 15, taking the higher. The proviso applies to capital goods and plant and machinery.
Section 29(5), proviso
Amendment history
The CBIC text carries 5 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Provision | Change | Instrument | Effective from |
|---|---|---|---|---|
| the whole section | enforcement | — | 22.06.2017 | |
| 1 | the heading; the proviso to 29(1); the second proviso to 29(2) | inserted "or suspension" and both suspension provisos | s.14 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)[2] | 01.02.2019 |
| 2 | 29(1)(c) | substituted for "(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." | s.121 of the Finance Act, 2020 (No. 12 of 2020)[3][4] | 01.01.2021, vide Notification No. 92/2020 - C.T., dated 22nd December, 2020 |
| 3 | 29(2)(b) | substituted for "returns for three consecutive tax periods" | s.101 of The Finance Act 2022 (No. 6 of 2022)[5][6] | 01.10.2022, vide Notification No. 18/2022 - CT dated 28.09.2022 |
| 4 | 29(2)(c) | substituted for "a continuous period of six months" | s.101 of The Finance Act 2022 (No. 6 of 2022)[5][6] | 01.10.2022, vide Notification No. 18/2022 - CT dated 28.09.2022 |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 22, Section 24, Section 25 | 29(1)(c) requires Section 22, Section 24 and Section 25 | 29(1)(c) "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" |
| Rule 21A of the CGST Rules, 2017 | the proviso to 29(1) prescribed by rule 21A of the CGST Rules 2017 | proviso to 29(1) "the registration may be suspended for such period and in such manner as may be prescribed" |
| Rule 21 of the CGST Rules, 2017 | 29(2)(a) prescribed by rule 21 of the CGST Rules 2017 | 29(2)(a) "has contravened such provisions of the Act or the rules made thereunder as may be prescribed" |
| Section 10 | 29(2)(b) requires Section 10 | 29(2)(b) "a person paying tax under section 10" |
| Section 15 | the proviso to 29(5) requires Section 15 | proviso to 29(5) "the tax on the transaction value of such capital goods or plant and machinery under section 15" |
| Rule 44 of the CGST Rules, 2017 | 29(5) prescribed by rule 44 of the CGST Rules 2017 | 29(5) "calculated in such manner as may be prescribed" |
| Section 16 | Section 16 branches on this provision | the section 16 record reads cancellation under section 29 through |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (11)
| Number | Date | Subject |
|---|---|---|
| Circular No. 237/31/2024-GST | 15 October 2024 | Clarifying the issues regarding implementation of provisions of sub-section (5) and sub-section (6) in section 16 of CGST Act,2017. |
| Circular No. 223/17/2024-GST | 10 July 2024 | Amendment in circular no. 1/1//2017 in respect of Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder. |
| Circular No. 158/14/2021-GST | 6 September 2021 | Clarification regarding extension of time limit to apply for revocation of cancellation of registration in view of Notification No. 34/2021-Central Tax dated 29th August, 2021 |
| Circular No. 134/04/2020-GST | 23 March 2020 | Seeks to clarify issues in respect of issues under GST law for companies under Insolvency and Bankruptcy Code, 2016 |
| Circular No. 129/48/2019-GST | 24 December 2019 | Standard Operating Procedure to be followed in case of non-filers of returns-reg. |
| Circular No. 99/18/2019-GST | 23 April 2019 | Seeks to clarify the extension in time under sub-section (1) of section 30 of the Act to provide a one time opportunity to apply for revocation of cancellation of registration on or before the 22nd July, 2019 for the specified class of persons for whom cancellation order has been passed up to 31st March, 2019. |
| Circular No. 95/14/2019-GST | 28 March 2019 | Seeks to clarify verification for grant of new registration. |
| Circular No. 96/15/2019-GST | 28 March 2019 | Seeks to clarify issues in respect of transfer of input tax credit in case of death of sole proprietor. |
| Circular No. 88/07/2019-GST | 1 February 2019 | Seeks to make amendments in the earlier issued circulars in wake of amendments in the CGST Act, 2017 (which shall come into force w.e.f. 01.02.2019). |
| Circular No. 69/43/2018-GST | 26 October 2018 | Circular on Standard Operating Procedure for Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16 |
| Circular No. 1/01/2017-GST | 26 June 2017 | Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder-Reg. |
Notifications (11)
| Number | Date | Subject |
|---|---|---|
| Notification No. 18/2025-Central Tax | 31 October 2025 | Seeks to notify the Central Goods and Services Tax (Fourth Amendment) Rules 2025 |
| Notification No. 20/2024-Central Tax | 8 October 2024 | Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017 |
| Notification No. 03/2023-Central Tax | 31 March 2023 | Extension of time limit for application for revocation of cancellation of registration amended by a later instrument |
| Notification No. 14/2022-Central Tax | 5 July 2022 | Seeks to make amendments (First Amendment, 2022) to the CGST Rules, 2017 |
| Notification No. 34/2021-Central Tax | 29 August 2021 | Seeks to extend timelines for filing of application for revocation of cancellation of registration to 30.09.2021, where due date for filing such application falls between 01.03.2020 to 31.08.2021, in cases where registration has been canceled under clause (b) or clause (c) of section 29(2) of the CGST Act. |
| Notification No. 16/2019-Central Tax | 29 March 2019 | Seeks to make Second Amendment (2019) to CGST Rules. |
| Notification No. 03/2019-Central Tax | 29 January 2019 | Seeks to amend the CGST Rules, 2017. |
| Notification No. 39/2018-Central Tax | 4 September 2018 | Seeks to make amendments (Eighth Amendment, 2018) to the CGST Rules, 2017 amended by a later instrument |
| Notification No. 17/2017-Central Tax | 27 July 2017 | Seeks to amend the CGST Rules, 2017. |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
| Notification No. 03/2017-Central Tax | 19 June 2017 | Notifying the CGST Rules, 2017 on registration and composition levy amended by a later instrument |
Unsettled questions
The words of section 29 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- What is a change in the constitution of the business? Clause (b) makes any such change a circumstance for cancellation and the Act nowhere says what the constitution of a business is or what changes it.
- What does an opportunity of being heard require? Proposed in the section 28 record of this batch; the first proviso to 29(2) uses the same words.
See also
- Section 22 of the CGST Act, 2017: persons liable for registration
- Section 24 of the CGST Act, 2017: compulsory registration in certain cases
- Section 25 of the CGST Act, 2017: procedure for registration
- Section 15 of the CGST Act, 2017: value of Taxable Supply
- Section 30 of the CGST Act, 2017: revocation of cancellation of registration
- Rule 44 of the CGST Rules, 2017: manner of reversal of credit under special circumstances
References
- Central Board of Indirect Taxes and Customs. "Section 29. Cancellation or suspension of registration". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 5. Retrieved 17 September 2026.
- The Central Goods and Services Tax (Amendment) Act, 2018. Cited in CBIC footnote 1.
- The Finance Act, 2020. Cited in CBIC footnote 2.
- Notification No. 92/2020-Central Tax, dated 22 December 2020: Seeks to bring into force Sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of Finance Act, 2020 (12 of 2020). Cited in CBIC footnote 2.
- The Finance Act, 2022. Cited in CBIC footnotes 3 and 4.
- Notification No. 18/2022-Central Tax, dated 28 September 2022: Seeks to notify 01.10.2022 as the date on which provisions of sections 100 to 114, except clause (c) of section 110 and section 111 of Finance Act, 2022 shall come into force. Cited in CBIC footnotes 3 and 4.
External links
- CGST Act, 2017, Section 29 on the CBIC tax information portal