GST registration restoration after filing pending returns and paying dues may follow under Rule 22(4) compliance.

GST registration cancelled for continuous non-filing of returns may be restored if the taxpayer files all pending returns and clears tax dues, interest and late fee under the proviso to Rule 22(4) of the CGST Rules, 2017. Cancellation under Section 29(2)(c) for non-furnishing of returns was treated as amenable to revival on compliance with the statutory conditions, following the coordinate bench view on identical facts. The authority was directed to consider restoration in accordance with law, while requiring the petitioner to bear arrears, penalty, interest and late fees. The period under Section 73(10) was to be computed from the date of the order, with the stated exception for FY 2024-25 under Section 44.

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Issues: Whether the petitioner, whose GST registration was cancelled for continuous non-filing of returns, was entitled to restoration of registration upon filing pending returns and clearing statutory dues under the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017.

Analysis: The cancellation had been made under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 for non-furnishing of returns for the prescribed period. The proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017 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 Court treated the case as covered by the earlier coordinate bench decision on identical facts and held that similar relief should follow, subject to compliance with the statutory requirements. The Court also directed that the petitioner bear arrears, penalty, interest, and late fees, and that the period under Section 73(10) of the Central Goods and Services Tax Act, 2017 be computed from the date of the order, with the stated exception for the financial year 2024-25 under Section 44 of the Central Goods and Services Tax Act, 2017.

Conclusion: The petitioner was held entitled to seek restoration of GST registration on compliance with the conditions under the proviso to Rule 22(4), and the authority was directed to consider restoration in accordance with law.

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