Cancellation of registration triggers payment of input tax credit or output tax on stock and permits cancellation for prescribed contraventions. Cancellation of registration may be ordered by the proper officer for business discontinuation, change in constitution, cessation of liability, prescribed contraventions, non-filing of returns, failure of voluntary registrants to commence business, or when registration was obtained by fraud, wilful misstatement or suppression of facts, subject to a hearing. Cancellation may be retrospective, does not affect prior liabilities, and requires the registrant to pay an amount equivalent to input tax credit or the output tax on stocked inputs, goods and capital goods, calculated and paid as prescribed, with particular rules for capital goods or plant and machinery.