GST registration cancellation can be reversed after filing pending returns and paying dues under the CGST Rules.

GST registration cancelled for non-filing of returns may be restored where the taxpayer files all pending returns and pays the tax dues, interest and late fee as required under Rule 22 of the CGST Rules, 2017. The proviso to sub-rule (4) allows the proper officer to drop cancellation proceedings on compliance with the prescribed conditions. Where the record shows that pending returns have been furnished and the requisite payments made, the registration can be considered for restoration on verification and in accordance with law.

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Issues: Whether the petitioner, whose GST registration had been cancelled for non-filing of returns, was entitled to restoration of registration after filing the pending returns and making the requisite payments.

Analysis: The registration had been cancelled under the provision empowering cancellation for continued default in furnishing returns. Rule 22 of the Central Goods and Services Tax Rules, 2017, particularly the proviso to sub-rule (4), permits the proper officer to drop cancellation proceedings where the person furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee. The record showed that the petitioner had filed the pending returns and deposited the penalty amount, and the respondents expressed no objection to grant of similar relief. On that basis, the matter was treated as fit for restoration of registration on compliance with the prescribed procedure.

Conclusion: The petitioner was entitled to seek restoration of GST registration by filing an appropriate application, and the respondent authorities were directed to consider it in accordance with law and restore the registration upon verification and compliance.

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