GST Cancellation - Compliance Closure Becomes Critical

Notification No. 05/2026-Central Tax revises the procedures governing voluntary cancellation, departmental suspension and cancellation, and restoration of registration. From 1 November 2026, the substituted Rule 20 requires specified returns to be filed before a voluntary cancellation application can be submitted and prescribes information relating to stock and associated tax liability. From 1 April 2027, revised Rules 21A and 22 provide a defined suspension and cancellation process, including a 30-day opportunity to cure specified return-filing or bank-account compliance defaults. New Rule 23A provides a system-driven route for revocation in specified cases where registration is deemed cancelled under Rule 22(5). The routes are distinct, and restoration is not automatic for every cancelled registration. Businesses must identify the applicable procedure