GST registration restoration permits regularisation of return defaults when cancellation impedes business operations and tax recovery.

GST registration cancelled solely for continuous non-filing of returns may be restored where there is no allegation of a dubious tax-evasion process. The text states that continued cancellation prevents the taxpayer from conducting business and issuing invoices, which may also impair recovery of tax dues. It supports allowing the taxpayer to regularise the default by filing all pending returns and paying applicable tax, interest, fine and penalty within the stipulated period. On compliance with these conditions, the cancelled registration is to be restored.

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Issues: Whether cancellation of GST registration for continuous non-filing of returns should be set aside and registration restored.

Analysis: The cancellation was founded solely on non-filing of returns, without any allegation of a dubious process to evade tax. Continued cancellation would prevent the petitioner from conducting business and raising invoices, and would consequently impair tax recovery. A pragmatic approach therefore required an opportunity to regularise the defaults through filing of returns and payment of statutory dues.

Conclusion: The cancellation of registration was set aside, conditional upon filing all defaulting returns and payment of tax, interest, fine and penalty within the stipulated period; on compliance, registration is to be restored.

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