GST REG-17: Show Cause Notice for Cancellation of Registration
FORM GST REG-17 is a show-cause notice proposing cancellation of your GST registration under Section 29. Reply in FORM GST REG-18 on the portal within seven working days of service, answering each ground and curing the default where it can be cured — usually by filing the pending returns with tax, interest and late fee. If cancellation is ordered in REG-19, apply for revocation in REG-21.
What is this notice?
FORM GST REG-17 is issued when an officer has reason to believe a registration is liable to be cancelled — most often for continuous non-filing of returns, but also for non-commencement of business, registration obtained by fraud, or contravention of the Act or rules. The registration is usually suspended while the notice is pending, which stops you issuing tax invoices.
Common reasons it is issued
- Returns not filed for a continuous period — six months for a regular taxpayer, or three tax periods for a composition taxpayer
- Business not commenced within six months of voluntary registration
- Registration obtained by fraud, wilful misstatement or suppression of facts
- No business conducted from the declared place of business, or the premises found non-existent on verification
- Issue of invoices without supply, or availing input tax credit in contravention of Section 16
How to reply — step by step
- Act within the seven working days — suspension is already running, and an unanswered REG-17 becomes a cancellation order in REG-19 almost automatically.
- Cure the default first where it is curable: file every pending return with tax, interest and late fee, then reply attaching the ARNs as proof.
- Answer each ground separately. A notice alleging both non-filing and a non-existent place of business needs two answers, not one.
- Where the ground is 'premises not found', file evidence of occupation — rent agreement, electricity bill, photographs, delivery records — because the officer is acting on a verification report you have not seen.
- File FORM GST REG-18 on the portal and request a personal hearing. If cancellation is nevertheless ordered, apply for revocation in FORM GST REG-21 within the statutory period.
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Draft my reply free →Frequently asked questions
How long do I have to reply to REG-17?
Seven working days from service of the notice, under Rule 22(1). This is materially shorter than the thirty days allowed for most demand notices, and is the single most common reason registrations are lost by default.
Can a cancelled registration be restored?
Yes. Apply for revocation in FORM GST REG-21, generally within thirty days of the cancellation order, extendable by the proper officer. Where cancellation was for non-filing, the returns and dues must be cleared first.
What happens to my input tax credit on cancellation?
You must file a final return in FORM GSTR-10 and reverse credit on inputs, semi-finished and finished goods and capital goods held on the effective date, computed under Section 29(5) and the related rules.
Can I issue invoices while the registration is suspended?
No. During suspension you cannot issue a tax invoice or charge tax, which is why a REG-17 needs answering the week it arrives rather than at leisure.
Related notices
This page is general information, not legal advice. Every notice turns on its own facts — verify with a professional or draft a fact-checked reply on Yukti.