Discontinuation of Business: Delhi HC directs Proper Officer to dispose Application for Cancellation of GST Registration [Read Order]

The Delhi High Court directed the Proper Officer to dispose application for the cancellation of GST Registration on discontinuation of business by the petitioner, Janarden Pandey. The petitioner sought a direction to the respondents to allow the application seeking cancellation of registration. The petitioner was registered under the Central Goods and Services Tax Act, 2017 ( CGST Act ) and filed an application under Section 29 of the CGST Act seeking cancellation of its registration on the ground that petitioner had discontinued his business. As per the petitioner, the application has still not been disposed of.

A GST registration can be cancelled for various reasons, including: 1. Closure of business operations. 2. Change in business ownership or structure. 3. Change in the nature of business activities. 4. Non-compliance with GST regulations. 5. Transfer of business ownership etc. To cancel the GST registration, the business entity must file an application in the prescribed form ( Form GST REG-16 ) on the GST portal. The application for cancellation of GST registration must be filed within 30 days from the date on which the cancellation of registration is required.

Once the application is filed, the GST officer may request additional information or documents for processing the application. If the officer is satisfied that all the conditions are met, the GST registration will be cancelled within a period of 30 days from the date of application. A Division Bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “Petition is disposed of directing the Proper Officer to dispose of the application of the petitioner seeking cancellation of its registration within four weeks from today, if not already done. In case the application has already been disposed of, order be communicated to petitioner within four weeks.”

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