sec 29:Cancellation of registration

[Tax Grid]

(1) The proper officer may, either on his own motion or on an application filed by
the registered person or by his legal heirs, in case of death of such person, cancel the
registration, in such manner and within such period as may be prescribed, having regard to
the circumstances where,––
(a) the business has been discontinued, transferred fully for any reason including
death of the proprietor, amalgamated with other legal entity, demerged or otherwise
disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person, other than the person registered under sub-section (3) of
section 25, is no longer liable to be registered under section 22 or section 24.

(2) The proper officer may cancel the registration of a person from such date, including
any retrospective date, as he may deem fit, where,––
(a) a registered person has contravened such provisions of the Act or the rules
made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three
consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not
furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of
section 25 has not commenced business within six months from the date of
registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or
suppression of facts:
Provided that the proper officer shall not cancel the registration without giving
the person an opportunity of being heard.

(3) The cancellation of registration under this section shall not affect the liability of the
person to pay tax and other dues under this Act or to discharge any obligation under this Act
or the rules made thereunder for any period prior to the date of cancellation whether or not
such tax and other dues are determined before or after the date of cancellation.

(4) The cancellation of registration under the State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
cancellation of registration under this Act.

(5) Every registered person whose registration is cancelled shall pay an amount, by
way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit
of input tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock or capital goods or plant and machinery on the day immediately
preceding the date of such cancellation or the output tax payable on such goods, whichever
is higher, calculated in such manner as may be prescribed:
Provided that in case of capital goods or plant and machinery, the taxable person shall
pay an amount equal to the input tax credit taken on the said capital goods or plant and
machinery, reduced by such percentage points as may be prescribed or the tax on the
transaction value of such capital goods or plant and machinery under section 15, whichever
is higher.

(6) The amount payable under sub-section (5) shall be calculated in such manner as
may be prescribed.

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