# Cancellation of Registration — Grounds
## When can the Proper Officer cancel registration on his own?
A Proper Officer (PO) can suo-motu cancel registration in the following situations:
1. Fraud-based registration — Registration was obtained by means of fraud, wilful misstatement, or suppression of facts.
2. Contravention of prescribed provisions — A registered person has contravened the contraventions listed in Rule 21.
3. Voluntary registrant who never started business — A voluntarily registered person has not commenced business within 6 months from date of registration.
4. Composition taxpayer non-filer — Composition taxpayer has not furnished return for an FY beyond 3 months from the due date.
5. Non-filers (regular taxpayer) — Registered person has not filed returns for the specified period [Refer (h) & (i) below].
## Prescribed Contraventions [Rule 21]
The registered person —
| Clause | Contravention |
|---|---|
| (a) | Does not conduct any business from declared place of business |
| (b) | Issues invoice/bill without supply of goods/services in violation of the Act/Rules |
| (c) | Violates the provisions of Section 171 (anti-profiteering) |
| (d) | Violates Rule 10A (furnishing of bank account details) |
| (e) | Avails ITC violating Section 16 / rules |
| (f) | Furnishes outward supplies in GSTR-1 (as amended in GSTR-1A) in excess of supplies declared in valid GSTR-3B u/s 39 for one or more tax periods |
| (g) | Violates Rule 86B (1% mandatory cash payment) |
| (ga) | Violates 3rd or 4th proviso to Rule 23(1) |
| (h) | Monthly filer — has not furnished returns for a continuous period of 6 months |
| (i) | Quarterly filer — has not furnished returns for a continuous period of 2 tax periods |
## Quick memory aid
- Fraud / Non-commencement / Non-filing are the three big triggers.
- For composition dealers, the threshold for non-filing is 3 months past due date of annual return.
- For regular dealers, 6 months (monthly) / 2 quarters (quarterly).