GST registration restoration may follow filing pending returns and payment of dues, interest and late fee after cancellation for non-filing.

GST registration cancellation for non-filing of returns may be reconsidered where the taxpayer furnishes all pending returns and pays the tax dues, interest and late fee, in line with the proviso to Rule 22(4) of the CGST Rules, 2017. The text notes that cancellation has serious civil consequences and refers to a coordinate bench view treating such compliance as a basis for dropping proceedings. It also records that the taxpayer was given a 60-day window to approach the authority and seek restoration subject to statutory compliance.

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Issues: Whether the petitioner was entitled to restoration of GST registration after cancellation for non-filing of returns, subject to furnishing pending returns and making payment of tax dues, interest and late fee.

Analysis: The cancellation was founded on non-filing of returns for six months. The Court relied on the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017, under which proceedings may be dropped if the person, instead of merely replying to the notice, furnishes all pending returns and makes full payment of the tax dues with applicable interest and late fee. The Court treated the earlier coordinate bench decision as covering the same factual and legal position and noted that cancellation of registration carries serious civil consequences. It therefore directed the petitioner to approach the concerned authority within 60 days and comply with the stipulated statutory requirements.

Conclusion: The petitioner was granted a conditional opportunity to seek restoration of GST registration, and the authority was directed to consider restoration in accordance with law upon compliance with the required returns and payments.

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