Conditional GST registration restoration is available on filing pending returns and paying dues, with limitation counted from the order date.

GST registration cancelled for continuous non-filing of returns may be restored if the taxpayer furnishes all pending returns and pays the tax dues, interest and late fee, because the proviso to Rule 22(4) of the CGST Rules allows the proper officer to drop cancellation proceedings on such compliance. Cancellation under Section 29(2)(c) for failure to file returns for six months or more carries serious civil consequences, but the text recognises a conditional route to restoration rather than outright setting aside. It also states that the limitation period under Section 73(10) will run from the date of the order, with a stated exception for financial year 2024-25, which is linked to the taxpayer's continuing liability to clear arrears.

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Issues: (i) whether the petitioner, whose GST registration had been cancelled for continuous non-filing of returns, could be granted an opportunity to seek restoration upon furnishing all pending returns and payment of dues under the proviso to Rule 22(4) of the CGST Rules, 2017; (ii) whether the period under Section 73(10) of the CGST Act and State GST Act was to be computed from the date of the order, with the stated exception for financial year 2024-25.

Issue (i): whether the petitioner, whose GST registration had been cancelled for continuous non-filing of returns, could be granted an opportunity to seek restoration upon furnishing all pending returns and payment of dues under the proviso to Rule 22(4) of the CGST Rules, 2017.

Analysis: Cancellation under Section 29(2)(c) of the CGST Act, 2017 for failure to furnish returns for six months or more is attended by serious civil consequences. The proviso to Rule 22(4) permits the proper officer to drop cancellation proceedings where the person, instead of merely replying to the notice, furnishes all pending returns and makes full payment of tax dues along with applicable interest and late fee. The petitioner was therefore entitled to be given a further opportunity to comply and seek restoration in accordance with that proviso.

Conclusion: The petitioner was held entitled to approach the competent authority for restoration of GST registration within the stipulated time, and the authority was directed to consider restoration on compliance with the proviso to Rule 22(4) of the CGST Rules, 2017.

Issue (ii): whether the period under Section 73(10) of the CGST Act and State GST Act was to be computed from the date of the order, with the stated exception for financial year 2024-25.

Analysis: The disposal order recorded that the limitation period for action under Section 73(10) would run from the date of the present order, while the financial year 2024-25 would be governed by Section 44 of the CGST Act and State GST Act. This was linked to the conditional restoration relief and the petitioner's continuing liability to clear arrears.

Conclusion: The computation of the period under Section 73(10) was directed to run from the date of the order, subject to the stated exception for financial year 2024-25 under Section 44.

Final Conclusion: The cancellation was not set aside outright, but the petitioner was afforded a conditional route to restoration of GST registration on full compliance with the prescribed statutory requirements and payment of arrears, while ancillary tax-period directions were also issued.

Ratio Decidendi: Where GST registration is cancelled for non-filing of returns, the proviso to Rule 22(4) of the CGST Rules, 2017 enables restoration-related relief if the taxpayer furnishes all pending returns and clears the tax dues with applicable interest and late fee.

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