GST registration cancellation for non-filing may be restored on filing returns and paying dues, interest and late fee.

GST registration cancelled for non-filing of returns can be reconsidered where the taxpayer furnishes all pending returns and pays the tax dues, interest and late fee contemplated by the proviso to Rule 22(4) of the CGST Rules, 2017. The Gauhati HC treated cancellation as carrying serious civil consequences and held that the proper officer may drop the cancellation proceedings if the statutory conditions are met. The petitioner was given liberty to approach the competent authority for restoration, and the authority was directed to consider the request expeditiously in accordance with law.

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Issues: Whether cancellation of GST registration for non-filing of returns could be interfered with and whether the registration could be restored upon furnishing pending returns and payment of tax dues, interest and late fee under the proviso to Rule 22(4) of the CGST Rules, 2017.

Analysis: The cancellation was based on non-filing of returns for more than six months under Section 29(2)(c) of the GST law. The proviso to Rule 22(4) permits the proper officer to drop cancellation proceedings where the person, instead of replying to the notice, furnishes all pending returns and makes full payment of tax dues together with applicable interest and late fee. The Court treated cancellation of registration as carrying serious civil consequences and held that, if the petitioner approaches the authority and complies with the stated requirements, the authority may consider restoration in accordance with law.

Conclusion: The petitioner was granted liberty to seek restoration of GST registration by approaching the competent authority and complying with the proviso to Rule 22(4); the authority was directed to consider restoration expeditiously.

Final Conclusion: The writ petition was disposed of with directions enabling the petitioner to pursue restoration of registration on compliance with the required statutory conditions.

Ratio Decidendi: Where GST registration has been cancelled for non-filing of returns, the proper officer may drop the proceedings and restore registration if the taxpayer furnishes all pending returns and clears the tax dues, interest and late fee as contemplated by the proviso to Rule 22(4) of the CGST Rules, 2017.

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