Section 29 of CGST Act, 2017 : Section 29: Cancellation Or Suspension Of Registration

Explanation using Example

Here is a hypothetical scenario demonstrating the application of Section 29 of The Central Goods and Services Tax Act, 2017:

Mr. Arjun runs a textile business in Mumbai and is registered under the GST regime. Due to health issues, he decides to discontinue the business and informs the GST authorities about his decision. He files an application for cancellation of his GST registration citing the discontinuation of his business, as per Section 29(1)(a) of the CGST Act, 2017.

The proper officer reviews his application and decides to cancel Mr. Arjun's GST registration. During the pendency of the cancellation proceedings, the officer also suspends his registration to prevent any further tax liability from accruing, as allowed under the proviso to Section 29(1).

Mr. Arjun is also informed that despite the cancellation of his registration, he is still liable to pay any outstanding tax dues and comply with all GST obligations up to the date of cancellation, as stated in Section 29(3).

Before the cancellation can be finalized, Mr. Arjun must clear his tax liabilities, which include paying an amount equivalent to the input tax credit on his remaining stock, as required by Section 29(5).