Section No. – 9: Cancellation of VAT registration.—
(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.
(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:
Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.
(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.
(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.
(5) If, after the cancellation of a VAT registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.
(6) Where registration of a registered person is cancelled, he shall–
(a) without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and
(b) return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.