Analysis GST 1 min read

Delhi Sets INR 2.5 Crore ITC Threshold for GST Registration Cancellation

TaxIntelHub · 04 April 2026 · Last updated 05 Apr 2026

Delhi, on April 2, 2026, mandated Zonal In-charge approval for GST registration cancellations involving ITC exceeding INR 2.5 crore.

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.

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.

Taxpayers with significant ITC should anticipate increased scrutiny and longer processing times for GST cancellation.

Monitor processing times and potential challenges in obtaining Zonal In-charge approvals.

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