GST registration restoration depends on filing pending returns and paying dues, interest and late fee under the rules.

GST registration cancelled for continuous failure to furnish returns may be restored where the registered person furnishes all pending returns and pays the tax dues with applicable interest and late fee. The proviso to Rule 22(4) of the CGST Rules allows the proper officer to drop the cancellation proceedings when those statutory requirements are met, and the authority has jurisdiction to consider restoration on that basis. The petitioner was allowed to approach the concerned authority within two months, and the request was to be examined and acted on in accordance with law if the stated conditions are satisfied.

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Issues: Whether a registered person whose GST registration has been cancelled for non-furnishing of returns for six months or more can seek restoration of registration by furnishing all pending returns and paying the tax dues with applicable interest and late fee under the proviso to Rule 22(4) of the CGST Rules, 2017.

Analysis: The registration was cancelled under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 for continuous failure to furnish returns under Section 39(1) of the said Act. The proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017 permits the proper officer to drop the proceedings where, instead of replying to the show-cause notice, the person furnishes all pending returns and makes full payment of tax dues together with applicable interest and late fee. On that basis, the authority has jurisdiction to consider restoration when the statutory requirements are complied with.

Conclusion: The petitioner was permitted to approach the concerned authority within two months for restoration of GST registration, and the authority was directed to consider the request and take necessary steps for restoration in accordance with law if the stated requirements are fulfilled.

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