Tax Defaulters Get Second Chance: GST Registration Restoration Allowed with Full Payment Before August 31, 2023

HC ruled that a taxpayer with canceled GST registration can restore registration by paying arrears before 31.08.2023 under the extended amnesty scheme. Despite missing the original limitation period, the Court directed restoration of registration upon full tax and interest payment, providing relief to the petitioner and enabling business continuity.

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Issues Involved:
The issues involved in this case are the cancellation of GST registration of the petitioner due to failure to remit tax liability, the petitioner's appeal for revocation of cancellation after the limitation period, and the application of the amnesty scheme for restoration of registrations.

Cancellation of GST Registration:
The petitioner's GST registration was canceled in Form GST REG-19 on 04.02.2023 because of the petitioner's failure to remit the admitted tax liability. The petitioner approached the Court after the limitation for filing an Appeal under Section 107 of the GST Act had expired.

Amnesty Scheme for Registration Restoration:
The Court referred to a previous order where registrations were directed to be restored back, and a government amnesty scheme was mentioned in Notification No.03/2023 - Central Tax. The scheme allowed for the revocation of canceled registrations before 31.12.2022, with a prescribed procedure for application.

Extension of Amnesty Scheme:
The amnesty scheme was extended up to 31.08.2023 through Notification No.23/2023 - Central Tax. Even though the scheme initially applied to registrations canceled before 31.12.2022, the intention was to allow registrants whose registrations were revoked to revive their registration for business purposes.

Court's Decision:
The Court acknowledged that the benefit of the scheme should be available to individuals like the petitioner, whose registration was canceled after the specified cut-off date. Consequently, the Court directed the petitioner to pay the arrears of tax and interest before 31.08.2023 under the extended scheme. Upon payment, the registration of the petitioner would be restored immediately by the respondents.

Conclusion:
The writ petition was disposed of with no costs, and the connected miscellaneous petition was closed. The Court's decision ensured the revival of the petitioner's GST registration upon payment of arrears within the specified timeline under the extended amnesty scheme.

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