GST registration restoration allowed on filing pending returns and payment of dues under Rule 22(4) compliance

GST registration cancelled for non-filing of returns under Section 29(2)(c) of the CGST Act may be restored where the taxpayer files all pending returns and pays the tax dues with applicable interest and late fee, as contemplated by the proviso to Rule 22(4) of the CGST Rules. Following the coordinate bench reasoning, the HC extended similar relief and permitted the petitioner to apply within 60 days for restoration. On compliance with the prescribed requirements, the proper officer was directed to consider restoration in accordance with law and to take expeditious consequential steps.

---

---

Issues: Whether the petitioner, whose GST registration had been cancelled for non-filing of returns, was entitled to seek restoration of registration on compliance with the proviso to Rule 22(4) of the Central Goods and Services Tax Rules, 2017.

Analysis: The cancellation was founded on non-submission of returns for a continuous period of six months under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017. The order proceeds on the basis that where the taxpayer furnishes all pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer may drop the proceedings and pass the prescribed order under Rule 22(4). Applying the same reasoning as in the earlier coordinate bench decision, the Court found that similar relief should be extended, subject to compliance with the prescribed requirements within the time granted.

Conclusion: The petitioner was permitted to approach the concerned authority within 60 days for restoration of GST registration, and upon compliance with the proviso to Rule 22(4), the authority was directed to consider restoration in accordance with law and take expeditious steps for consequential restoration.

---