Cancellation of registration can trigger recovery of input tax credit and continued tax liability, subject to an opportunity to be heard. Cancellation of registration may be ordered where business is discontinued, transferred, reconstituted, or where liability to register ceases; for prescribed contraventions, prolonged non-filing of returns, failure to commence after voluntary registration, or where registration was obtained by fraud, misstatement or suppression. The officer may set a retrospective effective date but must provide an opportunity to be heard. Cancellation does not affect prior-period tax liabilities. A cancelled registrant must pay an amount equivalent to input tax credit on inputs, stocks and capital goods or the output tax on such goods, calculated as prescribed, with specific adjustments for capital goods and plant and machinery.