Services Tax Act shall be deemed to be a rejection or approval under this Act.

Cancellation [or suspension]90 of registration-

1. (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,—
   • (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
   • (b) there is any change in the constitution of the business; or [(c) the taxable person is no longer liable to be registered under section 22 or Section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of Section 25.]%! [PROVIDED that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.]?2
2. (2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,—
   • (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or 90, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018. 91, Substituted vide The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, clause reads as under :-
   • (c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24. 92, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 48
   • (b) a person paying tax under section 10 has not furnished [the return for a financial year beyond three months from the due date of furnishing the said return]93; or
   • (c) any registered person, other than a person specified in clause (b), has not furnished returns for [such continuous tax period as may be prescribed]94; or
   • (d) any person who has taken voluntary registration under sub- section
3. (3) of section 25 has not commenced business within six months from the date of registration; or
   • (e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard. [PROVIDED FURTHER, that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.]?s
4. (3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
5. (4) The cancellation of registration under the Central Goods and Services Tax Act shall be deemed to be a cancellation of registration under this Act.
6. (5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: Provided that incase of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section15, whichever is higher.
7. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. 93, Substituted for the Words "returns for three consecutive tax periods" by The Bihar Goods and Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023. Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023. 95, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 49

²⁰²⁰ Prior to substitution

⁹⁴ Substituted for the Words " a continuous period of six months" by the The Bihar Goods and