GST registration restoration may follow filing pending returns and payment of dues, interest and late fee under Rule 22(4).

GST registration cancelled for non-furnishing of returns for six months or more may be restored if the registered person files all pending returns and pays the tax dues, interest and late fee required by the proviso to Rule 22(4) of the CGST Rules, 2017. Cancellation under Section 29(2)(c) of the CGST Act is a serious civil consequence, but the competent authority may drop the cancellation proceedings once the statutory conditions are satisfied. The authority must consider restoration on compliance with the prescribed formalities, and the affected person may seek reinstatement by approaching the proper officer.

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Issues: Whether GST registration cancelled for non-furnishing of returns for six months or more could be restored on filing of pending returns and payment of tax dues, interest and late fee under the proviso to Rule 22(4) of the CGST Rules, 2017.

Analysis: Cancellation of registration under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 is a serious civil consequence. The proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017 enables the proper officer to drop the cancellation proceedings where the person served with notice furnishes all pending returns and makes full payment of tax dues together with applicable interest and late fee. On that basis, the petitioner was directed to approach the concerned authority and seek restoration by complying with the prescribed requirements.

Conclusion: The request for restoration was left open to be considered by the competent authority, and the petitioner was granted an opportunity to obtain restoration upon compliance with the statutory conditions.

Final Conclusion: The writ petition was disposed of with a direction to the competent authority to consider restoration of GST registration on compliance with the required statutory formalities.

Ratio Decidendi: Where GST registration has been cancelled for non-furnishing of returns, the proviso to Rule 22(4) permits the cancellation proceedings to be dropped if all pending returns are filed and the tax dues, interest and late fee are paid, and the competent authority must consider restoration accordingly.

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