The government has intensified its compliance drive by cancelling GST registrations of taxpayers who have failed to file returns for a continuous period, as prescribed under the GST law. This enforcement action targets both regular and composition scheme taxpayers who have defaulted on their filing obligations, despite repeated reminders and notices. The objective is to ensure that only active and compliant businesses remain registered under the GST regime, thereby maintaining the integrity of the tax system.

According to the provisions, GST registration may be cancelled if a regular taxpayer fails to file returns for six consecutive months or if a composition scheme taxpayer fails to file quarterly returns for three successive periods. In such cases, the tax authorities are empowered to initiate a suo motu cancellation of registration. The process includes issuing a show cause notice, allowing the taxpayer to respond or rectify the default within a specified time. If no satisfactory response is received, the registration is formally cancelled.The government has advised taxpayers to monitor their return filing status regularly and to ensure that all pending returns are filed promptly to avoid cancellation. Those whose registrations have been cancelled may apply for revocation within 30 days, subject to fulfillment of all pending compliance requirements. This measure underscores the importance of timely and accurate return filing as a core obligation under GST, reinforcing the government’s focus on building a disciplined and transparent tax ecosystem.