Analysis
GST
1 min read
Delhi Sets INR 2.5 Crore ITC Threshold for GST Registration Cancellation
Full Story
Delhi, on April 2, 2026, mandated Zonal In-charge approval for GST registration cancellations involving ITC exceeding INR 2.5 crore.
Background
The order, issued by the Department of Trade and Taxes, aims to streamline GST registration cancellations under Section 29 of the DGST Act, 2017, and supersedes all previous instructions.
Key Analysis
Threshold implementation
Ward-level officers can directly decide on cases up to INR 2.5 crore ITC.
Enhanced scrutiny
High-value ITC cases now face mandatory Zonal In-charge approval.
Transparency boost
Zonal In-charge approvals must be documented with final orders.
Bottom Line
Taxpayers with significant ITC should anticipate increased scrutiny and longer processing times for GST cancellation.
Watch For
Monitor processing times and potential challenges in obtaining Zonal In-charge approvals.
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