Restoration of GST registration: opportunity to restore registration by filing pending returns and paying dues within a time limit.

Petitioner whose GST registration was cancelled for non-filing of returns was held entitled to a time bound opportunity to seek restoration by furnishing all pending returns and making full payment of tax, interest and late fee under the statutory proviso permitting dropping of cancellation proceedings on compliance; cancellation ground remains failure to furnish returns for six continuous months. The writ succeeded because the appellate dismissal was on limitation not merits; the authority is directed to consider restoration if petitioner applies within two months, and to compute the recovery period under the relevant tax provision from the date of this order with specified exclusions.

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Issues: Whether the petitioner, whose GST registration was cancelled under Section 29(2)(c) for non-filing of returns, can seek restoration/revocation of registration by furnishing pending returns and payment of dues despite lapse of time for filing a revocation application and after dismissal of first appeal on limitation.

Analysis: Rule 22 of the Central Goods and Services Tax Rules, 2017 and the proviso to sub-rule (4) permit the proper officer to drop cancellation proceedings where the person furnishes all pending returns and makes full payment of tax, interest and late fee. Section 29(2)(c) authorises cancellation for non-furnishing of returns for six continuous months. The writ petition shows the petitioner has updated pending returns and paid dues on the GST portal; the first appellate dismissal was on limitation and not on merits. In view of the civil consequences of cancellation and the statutory proviso permitting restoration on compliance, the petitioner is entitled to an opportunity to approach the proper officer and seek restoration by fulfilling the conditions prescribed under the proviso to Rule 22(4). The Court exercised extraordinary jurisdiction to grant the petitioner a time-bound opportunity and directed computation of period under Section 73(10) (except financial year 2024-25 as per Section 44) from the date of the order.

Conclusion: The petitioner is entitled to an opportunity to seek restoration of GST registration; if the petitioner approaches the concerned authority within two months, furnishes all pending returns and makes full payment of tax, interest and late fee, the concerned authority shall consider and take necessary steps for restoration of registration in accordance with law. This relief is granted in favour of the assessee.

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