GST registration cancellation for non-filing can be restored on filing pending returns and paying dues with interest and late fee.

GST registration cancelled for non-filing of returns under Section 29(2)(c) may be restored where the taxpayer furnishes all pending returns and pays the tax dues with applicable interest and late fee. The proviso to Rule 22(4) allows the proper officer to drop cancellation proceedings and issue the prescribed order when these compliance requirements are met instead of a reply to the show-cause notice. Given the serious civil consequences of cancellation, restoration remains available on compliance with the prescribed conditions, and the competent authority must consider the request in accordance with law.

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Issues: Whether the petitioner, whose GST registration had been cancelled for non-filing of returns, was entitled to seek restoration of registration upon furnishing all pending returns and paying the tax dues with applicable interest and late fee.

Analysis: Cancellation under Section 29(2)(c) of the CGST framework is attracted where returns are not furnished for a continuous period of six months. The proviso to Rule 22(4) of the CGST Rules permits the proper officer to drop the cancellation proceedings and issue the prescribed order where the taxpayer, instead of replying to the notice, furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee. In view of the serious civil consequences of cancellation, the petitioner was permitted to approach the competent authority for restoration on compliance with the prescribed requirements.

Conclusion: The petitioner was directed to apply for restoration of GST registration within the stipulated period, and the competent authority was directed to consider the request in accordance with law upon compliance with the proviso to Rule 22(4).

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