Cancellation of registration may be ordered for specified contraventions, triggering tax liability and input credit reversal obligations. Cancellation of registration may be ordered by the proper officer or on application when a business is discontinued, transferred, reconstituted, or when the person ceases to be liable; it may also follow prescribed contraventions, prolonged non furnishing of returns, failure to commence business after voluntary registration, or registration obtained by fraud, including retrospective cancellation after an opportunity to be heard. Cancellation does not affect liability for tax and other dues prior to cancellation, and the cancelled person must pay, by electronic ledger debit, an amount equivalent to input tax credit on stock and capital goods or the output tax on such goods, calculated as prescribed.