Cancellation of GST registration notification allows revocation applications till 30 June 2023 subject to compliance and payment

Notification permits persons whose GST registration was cancelled for non-compliance under Section 29(2)(b) and (c) to apply for revocation of cancellation until 30 June 2023, provided they file returns due up to the effective cancellation date and pay tax, interest, penalty and late fee; no further extension is available. The Explanation expands coverage to include those who failed to seek revocation within Section 30 time limits and those whose appeals against cancellation were rejected as time barred. The writ petition was disposed directing the petitioner to apply for revocation by 30 June 2023 and the cancellation and appellate affirmation will not preclude consideration under the Notification.

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Issues:
The issues involved in the judgment are the cancellation of GST registration, rejection of appeal, and the applicability of Notification No. 03/2023-Central Tax for revocation of cancellation of registration.

Cancellation of GST Registration:
The petitioner sought quashing of the Order-in-Original dated 24.02.2022, which canceled the GST registration, on the grounds of failure to file returns and appear for a physical hearing. The petitioner had submitted returns in GSTR-3B for the relevant period and paid the GST amount. The Order-in-Appeal also affirmed the cancellation of registration. The petitioner's business faced difficulties due to the cancellation of registration, leading to payment withholding by employers. The petitioner requested immediate restoration of GST registration.

Rejection of Appeal:
The appeal filed by the petitioner against the Order-in-Original was rejected by the Appellate Authority mainly due to not filing the appeal for revocation of canceled GST registration within the prescribed time limits under the Central Goods and Service Tax Act, 2017. The appeal was rejected under Section 107(1) & 107(4) of the Act, along with rule 109 A(1) of the Central Goods and Service Tax Rules, 2017.

Applicability of Notification No. 03/2023-Central Tax:
The Notification provided a window of opportunity for registered persons whose registration was canceled under specific clauses of Section 29 of the CGST Act on or before 31st December 2022. The petitioner fell under the category covered by the Notification and was eligible to apply for revocation of cancellation of registration until 30th June 2023. The Notification required filing of due returns, payment of taxes, interest, penalty, and late fees. The petitioner was willing to avail of this opportunity to revive the business affected by the cancellation of registration.

Judgment Summary:
The High Court considered the Notification No. 03/2023-Central Tax and its beneficial nature in providing relief to registered persons facing cancellation of GST registration. Despite the rejection of the appeal, the petitioner was directed to approach the proper officer for revocation of cancellation of registration by 30th June 2023, following the conditions outlined in the Notification. The impugned orders of cancellation of registration were not to hinder the consideration of the revocation application. The writ petition was disposed of in light of the Notification, aiming to alleviate the difficulties faced by registered persons affected by the cancellation of GST registration.

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