Businesses must file their GST returns on time to avoid cancellation of their GST registration. Under Section 29(2) of the CGST Act, if a regular taxpayer fails to file returns for six consecutive months, or a composition dealer for three consecutive quarters, the GST registration can be canceled by the tax authorities.

Cancellation means you can no longer legally charge GST on sales, risking fines, loss of input tax credit, and reputational damage. However, if your GST registration is canceled due to non-filing, you have options to restore it. You can apply for revocation within 30 days of the cancellation order by filing all pending returns and paying any dues, or if the deadline passes, you must apply for a fresh registration.

The best way to avoid cancellation and penalties is to stay compliant by filing returns timely and keeping your business details updated.

For a detailed guide on the GST cancellation and revocation process, visit:
https://www.auditfiling.com/our_stories/If-you-don%27t-file-can-you-cancel-your-gst-registration-how-to-get-It-back