GST registration restoration for non-filing defaults, subject to filing pending returns and clearing tax dues.

GST registration cancelled for continuous non-filing of returns was restored by the HC because the default was confined to failure to file returns for the relevant period and the assessee was willing to regularise the lapse. The Court treated compliance with pending return filing and payment of tax, penalty and interest as sufficient to warrant restoration, and set aside the cancellation order subject to fulfilment of those obligations within the stipulated time.

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Issues: Whether the cancellation of GST registration for continuous non-filing of returns for six months was liable to be set aside and the registration restored subject to compliance with filing of returns and payment of dues.

Analysis: The cancellation was founded solely on the petitioner's failure to furnish returns for the default period. The petitioner expressed readiness to regularise the lapse by filing the pending returns and making good the arrears of tax, penalty and interest. In view of that stand, the dispute was capable of being resolved by granting restoration of registration on compliance with the default obligations.

Conclusion: The cancellation order was set aside and the GST registration was directed to be restored within the stipulated period, subject to the petitioner filing the pending returns and paying the tax, penalty and interest due for the default period.

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