Retrospective GST registration cancellation limited to notice date, with permission to file pending returns and regularise compliance.

Retrospective GST registration cancellation was held too harsh where the challenge was limited to its retrospective operation and the taxpayer did not seek restoration of registration. The cancellation was directed to operate only from the date of the show cause notice, preserving the valid part of the order while removing the retrospective effect. The taxpayer was also permitted access to the GST portal to upload pending returns for March 2022 to June 2022, reflecting the limited default and the need to regularise compliance for that period.

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Issues: Whether retrospective cancellation of GST registration ought to be set aside and whether the petitioner should be permitted to file returns for the period March 2022 to June 2022.

Analysis: The petition challenged the cancellation order only to the extent it operated retrospectively. The cancellation had already taken effect, and the petitioner did not seek restoration of registration. In view of the reason for the delay in filing returns and the limited nature of the default, retrospective cancellation was considered too harsh. The petitioner was also allowed access to the GST portal to upload the pending returns for the relevant period.

Conclusion: The retrospective cancellation was set aside, and the GST registration was directed to stand cancelled from the date of the show cause notice. The petitioner was permitted to file the pending returns for March 2022 to June 2022.

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