REG-17: notice to cancel your GST registration

What a REG-17 is

The officer can start cancellation of a registration on their own, for the reasons listed in Section 29(2). The first step is a show cause notice in Form REG-17 stating the reason. The order, if one is passed, comes after your reply.

Common reasons

• Not filing returns for a continuous period of six months (for regular taxpayers).
• The business is not found at the registered place, or has stopped.
• Issuing invoices without actually supplying goods or services.
• Contravening provisions of the Act or Rules.
• Registration obtained by fraud, wilful misstatement or suppression of facts.

Step by step: how to reply

1. Read the reason and the date. The window is working days, so act the same day.
2. If the reason is non-filing, file the pending returns and pay the tax, interest and late fee. This is usually the strongest answer.
3. If the reason is the business place, gather proof of the address: rent agreement, utility bill, photographs.
4. File REG-18 on the portal with a clear explanation and attachments.
5. Save the acknowledgement and watch the portal for the order.

What to attach

• Proof that pending returns are now filed and dues paid.
• Proof of the business address and that the business is running.
• Any document the notice relies on, with your answer to it.

What happens next

If the officer is satisfied, they drop the proceedings in REG-20. If not, they cancel the registration in REG-19, normally within 30 days of your reply. If your registration is cancelled, you can apply for revocation in Form REG-21 within 30 days of the cancellation order. Pending returns and tax dues do not disappear on cancellation, so keep complying.

Common mistakes

• Ignoring the notice, which leads to cancellation almost by default.
• Counting calendar days instead of working days, or starting late.
• Replying without filing the pending returns first.
• Missing the 30-day revocation window after an order.