The Goods and Services Tax Network on November 01, 2026, issued advisory on the Revised Process for Approval of Registration Cancellation application under Form GST REG-16.
The GST system has revised the self-cancellation process under Rule 20 of the Central Goods and Services Tax (CGST) Rules, 2017, by introducing system-based validations and electronic approval of cancellation applications. Before submission of Form GST REG-16, the system will verify that all applicable returns due on or before the effective date of cancellation have been filed. Where GSTR-1 or the Invoice Furnishing Facility (IFF) has been furnished for a tax period, the corresponding GSTR-3B must also be filed. Applications may move to the “Pending for Returns Filing” stage where certain returns are not yet due, and taxpayers must file them within the prescribed timelines. Failure to do so will result in referral to the jurisdictional tax officer.
Once the required returns are filed within the prescribed timelines, Composition Taxpayers, NRTPs, OIDAR Taxpayers and ISDs will receive electronic approval for cancellation without officer intervention. For Regular, Casual and SEZ taxpayers, the system will additionally verify the output tax liability (OTL). Where the OTL is ₹2.5 lakh or less per tax period, cancellation will be approved electronically. Where the OTL exceeds ₹2.5 lakh in any tax period, the taxpayer must file Form GSTR-10 within three days from the applicable trigger date, following which the application will move to the “Pending for Final Return” stage. Timely filing will result in electronic cancellation, while non-filing will lead to referral to the jurisdictional tax officer. Where the officer subsequently cancels the registration, Form GSTR-10 must be filed within 90 days from the effective date of cancellation, wherever applicable.
