Voluntary cancellation
Under Section 29 of the CGST Act, a GST registration cancellation can be initiated by the person registered under GST in the following circumstances:

• Discontinuance or closure of a business.
• Transfer of business, amalgamation, merger, de-merger, lease or other pertinent reasons.
• Change in the constitution of business, which results in a change of PAN.
• Turnover reduces below the threshold limit for GST registration.
• Death of the sole proprietor.
• Any other reason, the likes of which must be proved in the application.

GST Return
GSTR-10: GSTR-10 is a final return required to be filled within the 3 months of date of cancellation or the date of order of cancellation whichever is later. This is done to ensure that the taxpayer is devoid of liabilities. Input Service Distributors or non-resident taxpayers are exempted from this provision.
If the final GST return is not filed in Form GSTR-10, the taxpayer will be issued a notice in GSTR-3A, prompting him/her to do the same within 15 days of the issue of such notice. If the taxpayer fails to comply with the notice, initiatives will be taken to assess the liability of the taxpayer based on the information available with the concerned Officer. The assessing order will be withdrawn if the applicant files the return within 30 days of the issue of notice.

Cancellation by department order

• The taxable person under GST does not conduct any business from the declared place of business; or
• Issues invoice or bill without supply of goods or services in violation of the GST Act and/or GST rules.
• If a person having GST registration has continuously not filed GST returns for six months.

Before the cancellation of registration, the Officer would issue a notice to such person whose GST registration is liable to be cancelled, requiring show cause within seven working days from the date of service of such notice. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand cancelled.
Difference between Annual Return and Final return
Taxpayer gets usually confused between Annual and Final return. Annual Return is GSTR-9 with is to be filled by taxpayer having the annual turnover more than 2 crores before 31st December of subsequent year. But final return is GSTR-10 which is required to be filled when taxpayer no longer wishes to remain registered under GST Act and wants to cancel its GST Registration.