Goods and Services Tax (GST) registration of over 3.49 lakh business establishments has been withdrawn in Haryana, Punjab, Himachal Pradesh, and UT Chandigarh in the last 3 years as of different reasons, including closure of business.
Over 2.20 lakh businesses encountered GST cancellation in Haryana beginning the financial year 2021-22 till June 30, as per the information shared by the Union Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha.
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Likewise, Punjab had 84,101 such businesses that faced GST cancellation, 36,987 businesses closed shop in the hill state of Himachal Pradesh while in UT Chandigarh 7,540 businesses shut shop during this period.
Goods and Services Tax (GST) Registration Cancellation
| State | 2021-22 | 2022-23 | 2023-24 | 2024-25 |
|---|---|---|---|---|
| Haryana | 57,580 | 68,629 | 71,972 | 22,485 |
| Punjab | 23,928 | 23,256 | 24,500 | 12,417 |
| Himachal Pradesh | 11,841 | 10,851 | 10,585 | 3,710 |
| Chandigarh | 2,071 | 2,082 | 2,522 | 865 |
| All India | 13.14L | 15.26L | 14.45L | 5.71L |
Note: (This table provides comprehensive data up to June 30th)
While answering a question from Parimal Nathwani, an industrialist and MP of YSR Congress from Andhra Pradesh, Chaudhary cited that the major reasons for cancellation of GST registrations since FY 2021-22 are closure of business, death of proprietor and failure to provide returns.
Merger or amalgamation of business, non-compliance of provisions of law, change in the constitution of business, invalid bank account, registration obtained using fraud, wilful misstatement or suppression of facts are the other reasons for cancellation of GST registration. During the last three years, the GST registration has been cancelled of over 48.58 lakh businesses across the nation.
