Delhi State Tax Commissioner notifies Monetary Limits and Approval Process for GST Registration Cancellation [Read Order]

The Commissioner of State Tax, Delhi, has issued an order assigning the functions of Proper Officers for the cancellation of GST registration on applications filed by taxpayers under Section 29 of the Delhi Goods and Services Tax (DGST) Act, 2017. The directive introduces a mandatory oversight mechanism requiring prior approval from a zonal incharge for cancellations involving high value tax credits.

The Department of Trade & Taxes Government of NCT of Delhi released Order No. DTT-D011/33/2026 on April 2, 2026. This order supersedes all previous instructions regarding the assignment of functions under Section 5(1) read with Section 2(91) of the DGST Act. It aims to standardize the process of voluntary registration cancellation by taxpayers while ensuring administrative oversight on significant tax credits.

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The notification establishes a dual-track approval process based on the financial threshold of the taxpayer’s ITC:

• ​For taxpayers who have availed or passed on ITC exceeding ₹2.5 crore, the Ward Officer is required to obtain prior approval from the concerned Zonal In-charge before deciding the application.
• ​In cases where the total ITC does not exceed ₹2.5 crore, the Proper Officer posted in the Ward is authorized to decide the application independently.

Key aspects the Notification laid down are;

• The Ward Officer must scrutinize every cancellation application in strict accordance with statutory provisions, circulars and Standard Operating Procedures (SOPs).
• ​For high-value cases, the officer must submit a reasoned proposal along with detailed findings to the Zonal incharge.
• ​The order specifies that a copy of the approval granted by the Zonal incharge must be mandatorily uploaded alongside the speaking order.

The order streamlines registration cancellations by setting a ₹2.5 crore ITC threshold for mandatory prior approval from the Zonal Incharge

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