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Rule 21 of the CGST Rules, 2017

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GST›CGST Rules, 2017›Chapter III, Registration

At a glance

Entitlement and conditions

Rule 21(a)–(d)Grounds include no business at the declared place, an invoice or bill without supply in violation of the Act or rules, breach of section 171 or its rules, and breach of the bank-detail requirement in rule 10A.
Rule 21(e)–(ga)Grounds also include credit taken contrary to section 16 or its rules, outward supplies in FORM GSTR-1 as amended in FORM GSTR-1A exceeding those in the valid section 39 return, breach of rule 86B and breach of the specified return-filing provisos in rule 23.
Rule 21(h)–(i)The return-default grounds cover a monthly filer’s continuous six-month default and a quarterly filer’s continuous default for two tax periods.

Procedure, powers and definitions

Rule 21The law does not settle the fact-specific classification of referenced-law violations or whether the compared outward-supply amounts establish the stated excess.

Rule 21 lists grounds on which registration is liable to cancellation. They include absence of business at the declared place, invoices without supplies, specified legal violations and return defaults. A mismatch ground compares outward-supply details with the valid return for the same periods. Each ground requires its own factual and legal assessment; the rule does not itself decide whether a particular person meets it.^[1]

Quick facts

Rule 21, CGST Rules, 2017

Registration to be cancelled in certain cases

Provision
Act	Central Goods and Services Tax Rules, 2017
Chapter	III, Registration
Rule title	Registration to be cancelled in certain cases
Amendments
Last amendment	10 July 2024: (Notification 12/2024-CT, 10.07.2024)
Amendments	5 footnotes in the CBIC text (table)
Related provisions
Other rules	Rule 10A, Rule 23, Rule 86B
Sections	Section 16 of the CGST Act, 2017, Section 29 of the CGST Act, 2017, Section 37 of the CGST Act, 2017, Section 39 of the CGST Act, 2017, Section 171 of the CGST Act, 2017
Forms named	FORM GSTR-1, FORM GSTR-1A
Structure 21 opening words, (a)No business from declared place 21(b)Invoice or bill without supply in violation 21(c)Anti-profiteering provision or rules violated 21(d)Bank-information rule violated 21(e)Input tax credit availed in violation 21(f)Outward-detail excess for the same tax periods 21(g)Electronic-credit restriction rule violated 21(ga)Post-revocation return provisos violated 21(h)Monthly returns unfurnished for continuous six months 21(i)Quarterly returns unfurnished for continuous two tax periods
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]
Questions reviewed	Prashant Prakash, 23 September 2026

Text

The text below is the rule 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 Rules as published in the Gazette of India is the legal source.

Rule 21, verbatim (show)

Rule 21

Rule 21. Registration to be cancelled in certain cases. -

The registration granted to a person is liable to be cancelled, if the said person, -

(a) does not conduct any business from the declared place of business; or

¹[(b) issues invoice or bill without supply of goods or services ²[or both] in violation of the provisions of this Act, or the rules made thereunder; or

(c) violates the provisions of section 171 of the Act or the rules made thereunder].

³[(d) violates the provision of rule 10A]

⁴[(e) avails input tax credit in violation of the provisions of section 16 of the Act or the rules made thereunder; or

(f) furnishes the details of outward supplies in FORM GSTR-1 ⁶[as amended in FORM GSTR-1A if any,] under section 37 for one or more tax periods which is in excess of the outward supplies declared by him in his valid return under section 39 for the said tax periods; or

(g) violates the provision of rule 86B.]

⁶[(ga) violates the provisions of third or fourth proviso to sub-rule (1) of rule 23; or]

⁵[(h) being a registered person required to file return under subsection (1) of section 39 for each month or part thereof, has not furnished returns for a continuous period of six months;

(i) being a registered person required to file return under proviso to subsection (1) of section 39 for each quarter or part thereof, has not furnished returns for a continuous period of two tax periods.]

1. Substituted (w.e.f. 22.06.2017) vide Notification No. 07/2017 -CT dated 27.06.2017 for "(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder."

2. Inserted vide Notification No.94/2020 - CT dated 22.12.2020.

3. Inserted vide Notification No.31/2019 - CT dated 28.06.2019.

4. Inserted vide Notification No.94/2020 - CT dated 22.12.2020.

5. Inserted (w.e.f. 01.10.2022) vide Notification No. 19/2022 - CT dated 28.09.2022.

6. Inserted vide Notification No. 12/2024 - CT dated 10.07.2024.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

No business from declared place 21 opening words, (a)

Questions to answer on the file2 questions

Was registration granted to the person whose declared place is under examination?
Does that person conduct any business from the declared place of business?

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Anti-profiteering provision or rules violated 21(c)

Questions to answer on the file2 questions

Has the person violated section 171 of the Act?
Has the person violated the rules made under section 171?

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Input tax credit availed in violation 21(e)

Questions to answer on the file3 questions

Was the input tax credit actually availed?
Did that availment violate section 16 of the Act?
Did that availment violate the rules made under section 16?

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Outward-detail excess for the same tax periods 21(f)

Questions to answer on the file5 questions

Were outward-supply details furnished under section 37 in FORM GSTR-1 for one or more tax periods?
Does the GSTR-1 side of the comparison reflect amendments in FORM GSTR-1A, if any?
Is the comparison return a valid return furnished by that person under section 39?
Do both sides of the comparison cover the same tax periods?
Do the amended outward-supply details exceed the outward supplies declared in those valid returns on a supported like-for-like comparison?

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Post-revocation return provisos violated 21(ga)

Questions to answer on the file2 questions

Has the person violated the third proviso to rule 23(1)?
Has the person violated the fourth proviso to rule 23(1)?

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Monthly returns unfurnished for continuous six months 21(h)

Questions to answer on the file2 questions

Is the person required under section 39(1) to file for each month or part thereof?
For how many continuous months have the required monthly returns not been furnished?

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Quarterly returns unfurnished for continuous two tax periods 21(i)

Questions to answer on the file2 questions

Is the person required under the proviso to section 39(1) to file for each quarter or part thereof?
For how many continuous tax periods have the required quarterly returns not been furnished?

Ticks stay in this browser only.

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]

Amendments to Rule 21 as footnoted in the CBIC text
Note	Instrument
1	Notification 07/2017-CT, 27.06.2017, effective22.06.2017
2, 4	Notification 94/2020-CT, 22.12.2020
3	Notification 31/2019-CT, 28.06.2019
5	Notification 19/2022-CT, 28.09.2022, effective01.10.2022
6	Notification 12/2024-CT, 10.07.2024

Provisions connected to Rule 21
Provision	Connection	Words that tie them
Section 29 of the CGST Act, 2017	Section 29 of the CGST Act, 2017 (2)(a) prescribed by this provision	29(2)(a) "contravened such provisions of the Act or the rules made thereunder as may be prescribed"
Section 29 of the CGST Act, 2017	Section 29 of the CGST Act, 2017 (2)(c) prescribed by this provision (h), (i)	29(2)(c) "such continuous tax period as may be prescribed"
Section 171 of the CGST Act, 2017	21(c) requires Section 171 of the CGST Act, 2017	21(c) "violates the provisions of section 171 of the Act or the rules made thereunder"
Section 16 of the CGST Act, 2017	21(e) requires Section 16 of the CGST Act, 2017	21(e) "in violation of the provisions of section 16 of the Act or the rules made thereunder"
Section 37 of the CGST Act, 2017	21(f) requires Section 37 of the CGST Act, 2017	21(f) "under section 37 for one or more tax periods"
Section 39 of the CGST Act, 2017	21(f), (h), (i) requires Section 39 of the CGST Act, 2017	21(f) "his valid return under section 39"
Rule 10A	21(d) requires Rule 10A	21(d) "violates the provision of rule 10A"
Rule 86B	21(g) requires Rule 86B	21(g) "violates the provision of rule 86B"
Rule 23	21(ga) requires Rule 23	21(ga) "violates the provisions of third or fourth proviso to sub-rule (1) of rule 23"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Circulars (1)

Number	Date	Subject
Circular No. 95/14/2019-GST	28 March 2019	Seeks to clarify verification for grant of new registration.

Notifications (7)

Number	Date	Subject
Notification No. 20/2024-Central Tax	8 October 2024	Seeks to make amendments (Second Amendment 2024) to the CGST Rules, 2017
Notification No. 12/2024-Central Tax	10 July 2024	Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017.
Notification No. 19/2022-Central Tax	28 September 2022	Seeks to make amendments (Second Amendment, 2022) to the CGST Rules, 2017.
Notification No. 94/2020-Central Tax	22 December 2020	Seeks to make the Fourteenth amendment (2020) to the CGST Rules, 2017.
Notification No. 31/2019-Central Tax	28 June 2019	Seeks to carry out changes in the CGST Rules, 2017. amended by a later instrument
Notification No. 03/2019-Central Tax	29 January 2019	Seeks to amend the CGST Rules, 2017.
Notification No. 07/2017-Central Tax	27 June 2017	Notification No. 7/2017- Central Tax amending Notification No. 3/2017- Central Tax has been issued

Unsettled questions

The words of Rule 21 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

No new position is asserted. Referenced-law violations and like-for-like excess remain explicit human judgements. A missing legal classification is not false.

See also

Section 29 of the CGST Act, 2017: cancellation or suspension of registration
Rule 10A of the CGST Rules, 2017: furnishing of Bank Account Details
Rule 23 of the CGST Rules, 2017: revocation of cancellation of registration
Rule 86B of the CGST Rules, 2017: restrictions on use of amount available in electronic credit ledger

References

Central Board of Indirect Taxes and Customs. "Rule 21. Registration to be cancelled in certain cases". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 5. Retrieved 17 September 2026.

External links

CGST Rules, 2017, Rule 21 on the CBIC tax information portal