GST registration revocation granted on terms requiring filing of outstanding returns, payment of dues, and ITC scrutiny.

Revocation of GST registration cancellation is conditioned on permitting the taxpayer to file outstanding returns and to pay tax, interest and fees within a specified period; the revocation requires portal adjustments to enable filing within four weeks and mandates filing and payment within that period. Use of unapproved input tax credit is prohibited until it is scrutinized and approved by a competent officer. Relief automatically ceases if the stipulated conditions are not fulfilled. The measure balances grant of relief for genuine non-compliance with safeguards to protect revenue through supervisory ITC checks.

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Issues: Whether the cancellation of the petitioner's GST registration dated 14.03.2025 should be revoked.

Analysis: The petitioner's non-filing of returns for six months is attributed to genuine financial and health difficulties. Revocation is conditioned on enabling the petitioner to file outstanding returns and to pay tax dues, interest and applicable fees within a specified period, and on safeguarding revenue interest by prohibiting utilisation of unapproved input tax credit until scrutiny and approval by a competent officer. The restoration mechanism includes technical steps to permit filing on the GST portal and supervisory checks on input tax credit before utilization.

Conclusion: The cancellation of GST registration dated 14.03.2025 is revoked and the registration is restored, subject to (i) enabling portal changes to permit filing and payment within four weeks, (ii) the petitioner filing all outstanding returns and paying tax, interest and fees within four weeks of restoration, (iii) prohibiting adjustment of payments from unutilized input tax credit until such ITC is scrutinized and approved, and (iv) automatic cessation of the relief if conditions are not complied with.

Ratio Decidendi: Where genuine reasons are shown for non-compliance, revocation of GST registration cancellation may be granted on terms that ensure filing of outstanding returns, payment of dues with interest and fees, and prior scrutiny and approval of any input tax credit before its utilization.

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