GST registration cancellation set aside for non-filing returns under Section 29(2)(c) CGST Act 2017

Gauhati HC set aside GST registration cancellation order dated 15.12.2021. The petitioner's registration was cancelled under Section 29(2)(c) of CGST Act, 2017 for non-filing of returns for six months. Court directed petitioner to approach concerned authority within one month seeking revocation. Upon petitioner's approach, authority must intimate outstanding statutory dues till cancellation date. After payment of all dues within prescribed time limit, authority shall revoke cancellation and restore GST registration. Writ petition disposed of with directions for restoration process.

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Issues involved:
Cancellation of GST registration due to non-furnishing of returns for a continuous period of 6 months under Section 29(2)(c) of the GST Act, 2017.

Summary:

Issue 1: Non-furnishing of Returns
The petitioner, a partnership firm engaged in works contract business, had its GST registration cancelled due to non-furnishing of returns for over 6 months. The cancellation was based on a show cause notice issued on 26.11.2021, despite the petitioner's explanation of facing difficulties during the Covid-19 pandemic.

Issue 2: Legal Provisions
Section 39(1) of the GST Act, 2017 mandates registered persons to submit returns for each month. Rule 22 of the CGST Rules, 2017 outlines the procedure for cancellation of registration, allowing for revocation upon fulfillment of specified conditions.

Issue 3: Petitioner's Submissions
The petitioner cited the impact of the Covid-19 pandemic on its business, leading to delays in return filings. Attempts to revive the business and comply with GST requirements were hindered by missed deadlines for revocation application and appeal filing.

Issue 4: Court's Decision
Considering past orders restoring GST registrations in similar cases, the court set aside the cancellation order dated 15.12.2021. The petitioner was directed to approach the authority for revocation within one month, pay outstanding dues, and upon compliance, the registration would be restored.

Conclusion
The court intervened in the cancellation of GST registration, emphasizing the importance of compliance with statutory obligations under the GST regime. The petitioner was granted the opportunity to seek revocation by settling outstanding dues, aligning with previous decisions in similar matters.

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