Section-26. Cancellation of registration
(1) The proper officer may, either on
his own motion or on an application filed, in the
prescribed manner, by the registered
taxable 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 23, is no longer liable to be
registered under Schedule V .
(2) The proper officer may, in the
manner as may be prescribed, cancel the
registration of taxable person from
such date, including any anterior date, as he
may deem fit, where, -
(a) the registered taxable 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
9 has not furnished returns for three
consecutive tax periods; or
(c) any taxable 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 23 has not commenced business
within six months from the date of
registration.
(3) Where any registration has been
obtained by means of fraud, wilful misstatement
or suppression of facts, the proper
officer may cancel the registration with
retrospective effect, subject to the
provisions of section 37.
(4) The proper officer shall not
cancel the registration without giving a notice to show
cause and without giving the person a
reasonable opportunity of being heard:
PROVIDED that such notice may not be
issued where an application is filed by the
registered taxable person or his
legal heirs, in the case of death of such person, for
cancellation of registration.
(5) The cancellation of registration
under this section shall not affect the liability of
the taxable person to pay tax and
other dues under the Act or to discharge any
obligation under the 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.
(6) The cancellation of registration
under the CGST Act/SGST Act shall be deemed to
be a cancellation of registration under
the SGST Act/CGST Act.
(7) Every registered taxable person
whose registration is cancelled shall pay an
amount, by way of debit in the
electronic credit or cash ledger, equivalent to the
credit of input tax in respect of
inputs held in stock and inputs contained in semifinished
or finished goods held in stock 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, the taxable person shall pay an amount
equal to the input tax credit taken
on the said capital goods reduced by the
percentage points as may be
prescribed in this behalf or the tax on the transaction
value of such capital goods under
sub-section (1) of section 15, whichever is higher.
(8) The amount payable under
sub-section (7) shall be calculated in such manner as
may be prescribed.
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