GST cancellation refers to the process of canceling the goods and services tax (GST) registration of a taxpayer. This can happen for a variety of reasons such as closure of business activities, transfer of ownership of the business, or other circumstances where GST registration is not required. The cancellation process begins with filing an application for cancellation through the GST portal, providing reasons for cancellation and supporting documents if necessary. On receipt of the application, the tax authority verifies the details and can, if necessary, make audits or obtain additional information. Once approved, the GST registration is canceled and a cancellation order is issued. It is the taxpayer’s responsibility to clear any outstanding balances and file all outstanding GST returns by the cut-off date. Canceling GST registration is necessary to avoid compliance issues and there is no penalty for filing a return. It also ensures that the taxpayer is not liable to collect or pay GST on transactions and marks a formal waiver of their GST liability.