GST registration restoration after non-filing turns on filing pending returns and clearing tax, interest and late fee.

Cancellation of GST registration for continuous non-filing of returns carries serious civil consequences, but Rule 22(4) permits the proper officer to drop cancellation proceedings where the taxpayer furnishes all pending returns and pays the tax dues, interest and late fee. On such compliance, the officer is empowered to consider restoration of registration and pass the appropriate order in accordance with law. The text notes that the taxpayer may approach the competent authority within the stipulated time and seek restoration subject to satisfaction of these requirements.

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Issues: Whether GST registration cancelled for continuous non-filing of returns could be restored on the petitioner furnishing pending returns and paying tax dues, interest and late fee in terms of the applicable cancellation procedure.

Analysis: Cancellation under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 for non-filing of returns has serious civil consequences. Rule 22(4) of the Central Goods and Services Tax Rules, 2017 permits the proper officer to drop cancellation proceedings and issue the prescribed order where the person, instead of replying to the show cause notice, furnishes all pending returns and makes full payment of tax dues with applicable interest and late fee. The writ court therefore recognised that, upon such compliance, the empowered officer has jurisdiction to consider restoration of registration and pass the appropriate order in accordance with law.

Conclusion: The petitioner was granted liberty to approach the competent authority within the stipulated time and, upon compliance with the requirements under Rule 22(4), the authority was directed to consider restoration of GST registration and decide the matter in accordance with law.

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