2026 (3) TMI 404 - HC - GST

Restoration of GST registration on compliance with Rule 22(4) proviso; authorities must consider and restore within directed time.

Petitioner may seek restoration of GST registration by complying with the proviso to Rule 22(4) of the CGST Rules: furnish all pending returns, pay ... Entitlement to approach the concerned CGST authority for restoration of GST registration - payment of tax interest and late fee - compliance with the requirements of the proviso to Rule 22(4). Cancellation of registration for non-filing of returns - HELD THAT:- The Court accepted that the petitioner's GST registration was cancelled on the ground of non-filing of returns for a continuous period of six months. Relying on the proviso to sub rule (4) of Rule 22 of the CGST Rules, 2017 and on the Coordinate Bench's decision in Pankaj Mohan [2025 (12) TMI 1452 - GAUHATI HIGH COURT] (and the cases relied upon therein), the Court held that where a person served with a show cause notice is willing to furnish all pending returns and make full payment of tax dues along with applicable interest and late fee, the proper officer may drop cancellation proceedings and pass the prescribed order for restoration in Form GST REG-20. The Court did not adjudicate the underlying merits of the cancellation but directed that the petitioner be permitted to approach the concerned authority with an application for restoration and compliance with the proviso. The authority is to consider the application in accordance with law and take necessary steps for restoration if the requirements of the proviso are met. The direction is temporal and procedural: the petitioner must approach within the period fixed by the Court and the authority must consider and act within the stipulated timeframe. [Paras 10, 11, 12] Petitioner permitted to apply for restoration of GST registration by complying with the proviso to Rule 22(4); the concerned authority shall consider the application in accordance with law and take necessary steps for restoration if requirements are satisfied. Final Conclusion: The writ petition is disposed of by directing the petitioner to apply for restoration of GST registration after compliance with the proviso to Rule 22(4) of the CGST Rules, 2017; the concerned authority is directed to consider and decide the application in accordance with law within the timeframe fixed by the Court. Issues: Whether, in view of the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017, a petitioner whose GST registration has been cancelled under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 for non-filing of returns for six continuous months is entitled to have the registration restored upon filing pending returns and making payment of tax, interest and late fees.Analysis: The Court applied the statutory framework under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 and the procedure in Rule 22 of the Central Goods and Services Tax Rules, 2017, in particular the proviso to sub-rule (4) which contemplates dropping cancellation proceedings where the person furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee, and the prescribed Form GST REG-20. The Court noted that the petitioner had been served with a show cause notice, subsequently furnished pending returns and deposited the outstanding tax, interest and late fee, and that Coordinate Bench decisions in identical circumstances have directed authorities to consider restoration applications filed in terms of the proviso to Rule 22(4). The respondent did not oppose issuing similar directions and the Court found the facts and legal position of the petitioner to be covered by the Coordinate Bench precedent.Conclusion: The petitioner is entitled to approach the concerned CGST authority for restoration of GST registration; if the petitioner submits an application and complies with the requirements of the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017, the authority shall consider and take necessary steps to restore the GST registration in accordance with law within the time directed by the Court.