Iterative multiuser detection and space-time coding are two promising techniques to increase the capacity and performance of coded multiuser systems in wireless channels. In this paper, a low-complexity iterative multiuser receiver is proposed using combined group multiuser detection and interference cancellation for space-time block coded MC-CDMA system. Turbo code is used for outer channel coding with log-MAP decoding. In each group, consisting of smaller number of users, multiuser likelihood ratios can be computed by employing MAP-based approach by taking into account of all possible transmitted symbols within each STBC time slot for these users. Moreover, once decoding information of all users are available after the first iteration, soft interference cancellation can be used instead of groupwise MAP-based detection for lower complexity, without sacrificing the performance significantly. Simulation results are presented in a Rayleigh multipath fading environment. The proposed receiver offers performance very close to that of single user system within a few iterations of joint detection and decoding.