GST registration cancellation may be redressed by filing pending returns and paying dues, interest and late fee under the rules.

Cancellation of GST registration for continuous non-filing of returns carries serious civil consequences, but the proviso to Rule 22(4) of the CGST Rules allows the proceedings to be dropped if the registered person furnishes all pending returns and pays the tax dues, interest and late fee. The authority retains jurisdiction to consider restoration where those procedural and fiscal requirements are satisfied, and the request must then be examined in accordance with law. The text therefore recognises restoration as available upon full statutory compliance, rather than as an automatic result.

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Issues: Whether cancellation of GST registration for non-filing of returns could be redressed by permitting the assessee to furnish pending returns and make payment of tax dues, interest and late fee under the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017.

Analysis: Cancellation of registration for continuous non-filing of returns attracts serious civil consequences. The proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017 contemplates that where, instead of replying to the show-cause notice, the person furnishes all pending returns and makes full payment of tax dues together with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in the prescribed form. On that basis, the authority has jurisdiction to consider restoration when the procedural and fiscal requirements are met.

Conclusion: The assessee was permitted to approach the concerned authority for restoration of GST registration by complying with the statutory requirements, and the authority was directed to consider the request in accordance with law.

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