# Procedure for Cancellation [Rules 20 & 22]
## (a) Voluntary Cancellation by Registered Person
1. Electronically submit application within 30 days of occurrence of the cancellation event.
2. Application must furnish details of:
- Inputs in stock / inputs in semi-finished & finished goods / capital goods in stock on the cancellation date,
- Liability thereon,
- Details of payment, if any, made against such liability,
- May furnish relevant supporting documents.
3. If satisfied that the person is not liable to be registered, PO issues cancellation order within 30 days of application.
## (b) Suo-Motu Cancellation by Department
1. PO cannot cancel without issuing SCN and giving reasonable opportunity of being heard.
2. Reply to SCN must be submitted within 7 days of service of notice.
3. If reply is satisfactory → PO drops proceedings and passes order in prescribed form.
4. If pending returns, taxes, interest, late fees are paid (instead of replying) → PO drops proceedings.
5. If cancellation is warranted → PO issues cancellation order within 30 days of SCN reply.
## (c) Effective Date of Cancellation
- Cancellation effective from a date determined by PO in the cancellation order (can be retrospective).
- In the cancellation order, the taxable person is directed to pay arrears of tax, interest or penalty, including amount liable u/s 29(5).
## Key Restriction — UIN Holders
A person granted UIN (Unique Identification Number) cannot apply for cancellation [Rule 20].
## Other consequences:
- Section 29(3): Cancellation does NOT affect liability of registered person to pay tax / dues for any period prior to cancellation date.
- Section 29(4): Cancellation under SGST/UTGST Act = deemed cancellation under CGST Act.
- Taxpayer cannot file returns for period after cancellation date, but can file returns for earlier periods (when registration was active).
- Order communicated by SMS and email to primary authorised signatory.