GST Registration Cancellation (REG-16) Cover Letter
Apply for cancellation of your GST registration when the business closes, is transferred or no longer needs to be registered.
What it is
A registered person can apply to cancel GST registration under Section 29 of the CGST Act read with Rule 20, in Form GST REG-16, for reasons such as closure of business, transfer or amalgamation, change in constitution requiring new registration, or turnover below the threshold. The application states the reason, the date of closure and the stock and capital goods held, on which input tax credit must be paid back. This letter summarises the request and the details.
When it is used
- Closing down a business or a proprietorship.
- Transfer of the business on sale, merger or death of the proprietor.
- Turnover below the registration threshold for a voluntarily registered person.
What the template covers
- Entity name, GSTIN, PAN and address
- Reason for cancellation
- Effective date of closure or event
- Detailed explanation
- Closing stock ITC to be reversed
- Final return (GSTR-10) and authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date; Place
Entity
Entity Name; GSTIN; Address; PAN
Reason
Reason for Cancellation; Effective Date of Closure / Event; Detailed Explanation
Final Return
Date of Filing GSTR-10 (Final Return); Closing Stock ITC (₹, if any)
Signatory
Authorised Signatory; Designation
Stamp duty, registration and filing
On cancellation, the taxpayer pays an amount equal to the ITC on stock and capital goods held (Section 29(5)). A final return in Form GSTR-10 is due within three months of the date of cancellation or the order, whichever is later. All pending returns should be filed before applying. Cancellation does not end liability for earlier periods. Check the current procedure on gst.gov.in.
Generate the GST REG-16 — Application for Cancellation
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. GST registration or returns)? Contact SKAG and Associates
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Frequently asked questions
Can I cancel GST registration if I have pending returns?
Pending returns should be filed first. The officer can reject the application or the portal may block it otherwise.
What is GSTR-10?
The final return filed after cancellation, giving details of stock held and the tax payable on it.
Can a cancelled registration be revoked?
Revocation is for registrations cancelled by the officer. A taxpayer who applied for cancellation would apply for a fresh registration later.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.