Filing for GST cancellation is a common step when a business shuts down, changes structure, or becomes ineligible. However, many taxpayers face a frustrating issue: GST Cancellation Request Rejected — often without knowing why.
In this blog by Unlock Digi Services, we break down why GST cancellation requests are rejected, how to avoid them, and how to resolve them.
Understanding GST Cancellation in India
Goods and Services Tax (GST) Understanding the Goods and Services Taxcancellation process is critical for smooth business transitions and ongoing compliance. For tailored guidance or seamless Goods and Services Tax cancellation support, reach out to Unlock Digi Services—your reliable partner in tax and business solutions cancellation means deactivating your GSTIN so you’re no longer liable to collect Goods and Services Tax or file returns.
This can be:
- Voluntary: You apply for cancellation
- Compulsory: Initiated by the tax officer due to non-compliance
Once cancelled, the GSTIN becomes inactive and must not be used.
Read more: Official Goods and Services Tax Cancellation Guide
The 5 Ultimate Guide to Fixing Goods and Services Tax Cancellation Rejections
1. Pending Goods and Services Tax Returns
If you haven’t filed all your Goods and Services Tax returns up to the cancellation date, the officer will reject your request.
File returns here: Goods and Services Tax Return Filing – Official Portal
Tip: File GSTR-3B, GSTR-1, and any other due returns before applying.
2. Incorrect or Incomplete Details
Errors in the cancellation form (Goods and Services Tax REG-16) like wrong dates, business details, or PAN mismatch can lead to rejections.
Solution: Double-check all entries before submission.
3. No Supporting Documents
In some cases, documents like business closure proof or partnership dissolution certificate are required.
Solution: Upload scanned copies with the application.
4. No Response to Show Cause Notice (SCN)
Failure to respond to a Show Cause Notice issued by the Goods and Services Tax officer can result in automatic rejection.
Check for notices: View Notices on Goods and Services Tax Portal
Tip: Always monitor your Goods and Services Tax inbox and respond within 7 days.
5. Outdated Business Status
If your profile still shows active operations, officers may deny your cancellation.
Solution: Update your profile under My Profile > Principal Place of Business before cancellation.
Steps to Cancel GST Properly
- File all pending returns
- Go to: Goods and Services Tax Cancellation Application
- Fill Form GST REG-16
- Upload documents
- Submit & track ARN
- Respond to queries if raised
- Download Cancellation Order (REG-19) upon approval
Official Reference: CBIC Goods and Services Tax Cancellation Instructions PDF
What If My Goods and Services Tax Cancellation Request Is Rejected?
If your ARN (Acknowledgement Reference Number) is rejected:
- Check the reason via “Track Application Status”
- Rectify the issue (e.g., file returns or re-upload documents)
- Reapply via REG-16 with corrected details
Track status: Track Goods and Services Tax Application Status
Pro Tips to Avoid Rejection
- File all returns, even NIL, before cancellation
- Ensure all fields in Form REG-16 are accurate
- Respond promptly to notices
- Upload necessary documents (proof of closure, etc.)
- Download acknowledgment and keep for future reference
Need Expert Help With GST Cancellation?
At Unlock Digi Services, we help:
- Cancel GST without rejection
- Respond to GST notices
- Resolve return filing issues
- Handle documentation and reapplication
Get It Done Right — First Time
📞 Call/WhatsApp: Phone: +91 94819 60948
📧 Email: info@unlockdigiservices.in
🌐 Visit: www.unlockdigiservices.in
Let the experts handle your GST while you focus on your business.
Fast. Compliant. Affordable.
