Section 29. Cancellation 1[or suspension] of
registration.-
(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
2[(c) the taxable person is no longer liable to be
registered under section 22 or section 24 or intends to optout of the
registration voluntarily made under sub-section (3) of section 25:]
1[Provided that during pendency of the proceedings
relating to cancellation of registration filed by the registered person, the
registration may be suspended for such period and in such manner as may be
prescribed.]
(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 3[the return for a financial year beyond three months from the due
date of furnishing the said return]; or
(c) any registered person, other than a person
specified in clause (b), has not furnished returns for a 4[such continuous tax
period as may be prescribed]; 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:
1[Provided further that during pendency of the
proceedings relating to cancellation of registration, the proper officer may
suspend the registration for such period and in such manner as may be
prescribed.]
(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.
