2026 (3) TMI 1583 - HC - GST

GST registration restoration requires filing pending returns and paying dues, interest and late fee before competent authority considers relief.

GST registration cancelled for non-filing of returns may be considered for restoration if the registered person complies with the statutory procedure by ... Cancellation of registration for non-filing of returns - Restoration of GST registration - Tax dues with interest and late fee - statutory scheme for issuance of a show-cause notice. Cancellation of registration for non-filing of returns - HELD THAT:- It is seen that as per Section 29(2)(c) of the Act of 2017, an officer, duly empowered, may cancel the GST registration of a person from such date, including any retrospective date, as he deems fit, where any registered person, has not furnished returns for a continuous period of 6(six) months. The Court noted that Section 29(2)(c) permits cancellation where returns are not furnished for a continuous period of six months, but the proviso to Rule 22(4) also enables the proper officer to drop such proceedings where the person furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee. Having regard to that statutory scheme and to the serious civil consequences flowing from cancellation of registration, the Court held that if the petitioners approach the empowered officer with the pending returns and requisite payments, their case for restoration must be considered in accordance with law. [Paras 8, 9, 10, 11, 12] The respondent authorities were directed to consider the petitioners' application for restoration of GST registration, and upon compliance with the requirements of the proviso to Rule 22(4), to take necessary steps for restoration as expeditiously as possible. Final Conclusion: The writ petition was disposed of with a direction to the authorities to consider restoration of the petitioners' GST registration if they submit the requisite application, file all pending returns and clear the outstanding statutory dues with applicable interest, penalty and late fee. The Court clarified that the delay in approaching it would not operate as a precedent. Issues: Whether the cancellation of GST registration for non-filing of returns could be considered for restoration on the petitioners furnishing all pending returns and clearing tax dues with applicable interest and late fee under the statutory procedure.Analysis: Cancellation of registration was invoked on the ground of continuous non-filing of returns. The statutory scheme permits issuance of a show-cause notice and, where the reply is satisfactory or where the taxable person furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee, the proper officer may drop the proceedings and pass the prescribed order. Since cancellation of registration entails serious civil consequences, the application for restoration was directed to be considered on compliance with the stipulated requirements.Conclusion: The petitioners were not granted an automatic restoration, but were given liberty to approach the competent authority with the requisite application, pending returns, and payment of dues for consideration of restoration in accordance with law.Final Conclusion: The writ petition was disposed of by directing consideration of the petitioners' claim for restoration of GST registration upon compliance with the statutory conditions.Ratio Decidendi: Where GST registration has been cancelled for non-filing of returns, restoration may be considered by the competent officer if the registered person furnishes all pending returns and pays the tax dues with applicable interest and late fee in accordance with the prescribed procedure.