GST registration restored conditionally on filing outstanding returns and paying tax, interest, penalties within four weeks

HC set aside the show-cause notice, cancellation order and appellate order and directed restoration of the petitioner's GST registration on condition that the petitioner files all outstanding GST returns for the default period and pays the requisite tax, interest, fine/penalty and late fees within four weeks. If the petitioner complies, the jurisdictional officer shall restore registration; failure to comply will automatically dismiss the writ, reinstate the cancellation with immediate effect, and afford no further benefit to the petitioner.

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The Court considered the issue of cancellation of GST registration due to non-filing of returns for consecutive six months. The petitioner filed an appeal under Section 107 of the Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017. The Court referred to previous decisions where individuals were given opportunities to remedy the default by filing returns and paying the requisite tax, interest, fine, and penalty. The Court emphasized the importance of allowing small retailers to rectify their non-compliance rather than canceling their registration, which could hinder business operations and tax recovery.The Court set aside the show cause notice, the order of cancellation of GST registration, and the order of the appellate authority, subject to the petitioner filing GST returns for the entire default period and paying the necessary amounts within four weeks. If the petitioner complies, their GST registration will be restored. However, failure to comply will result in the dismissal of the writ petition and immediate restoration of the cancellation of GST registration. The respondent authorities were directed to open the portal for the petitioner to fulfill the requirements within a specified timeframe.The Court disposed of the writ petition without costs, emphasizing that the allegations in the petition were not admitted by the respondents. The judgment focused on providing an opportunity for the petitioner to rectify the non-compliance and avoid the cancellation of GST registration, highlighting the importance of allowing businesses to continue operations while ensuring tax compliance.

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