Suo moto cancellation refers to the cancellation of registration under Goods and Services Tax (GST) by the tax officer on their own motion. The tax officer can initiate suo moto cancellation of registration for various situations as mentioned in the provisions of GST law, such as failure to furnish returns for a straight duration of 6 months, or supplying any goods or services without issuing an invoice to avoid paying taxes. The tax officer must serve the taxpayer with a Show Cause Notice (SCN) before initiating the cancellation proceedings. The taxpayer can reply to the SCN related to suo moto cancellation by navigating to Services > Registration > Application for Filing Clarifications.

If the taxpayer files an application for cancellation of registration or suo moto cancellation has been initiated by the tax official, the status of the GSTIN is shown as "Suspended". This will be changed to "Active" only when the application for cancellation of registration is rejected by the tax official or suo moto cancellation proceeding is dropped, after hearing.

It is important to note that if the GST registration is cancelled via suo moto, any liabilities before the date of suo moto cancellation would need to be paid by the assessee, whatever the fact when the finding of the liabilities would be completed. The assessee would be mandated to pay any liability concerned with that specific GSTIN, and the same could be retrieved later on even after the GSTIN cancellation.

After suo moto cancellation of GST registration, the taxpayer would be able to file returns for periods before the date of cancellation of registration mentioned in the cancellation order. However, the taxpayer would not be permitted to file returns or upload invoices for a period falling after the date of cancellation of registration mentioned in the cancellation order. Additionally, only details relating to e-mail ID and taxpayers mobile number can be updated on the GST portal after suo moto cancellation of GST registration.