What is suo moto cancellation in gst?

Suo moto cancellation simply means the GST officer initiates the cancellation of your registration. This happens on their own initiative, without you applying for it.

The department takes this step for specific reasons. The most common reason is not filing returns for a continuous period, usually six months. Other triggers include obtaining registration through fraud or issuing fake invoices without any actual supply of goods or services.

It’s not an abrupt action. The officer first issues a show cause notice. This gives you an opportunity to present your case. If your explanation is not found satisfactory, your registration is then cancelled. You can, however, apply for its revocation later by clearing your dues and compliances.