GST Registration Can Be Restored If Returns And Dues Are Cleared: Gauhati High Court

The Gauhati High Court has allowed a writ petition seeking restoration of Goods and Services Tax (GST) registration which had been cancelled due to non-filing of returns for a continuous period of six months. A single judge bench of Justice Kardak Ete was hearing the petition filed by a proprietor engaged in execution of works contracts, whose GST registration was cancelled by the GST authorities after issuance of a show cause notice alleging continuous default in filing returns. The Petitioner submitted that the failure to file returns was not deliberate and occurred due to lack of familiarity with the GST online portal and miscommunication with his tax consultant. It was contended that by the time the show cause notice was received, the window for filing reply and personal hearing had already expired. The petitioner further informed the Court that all pending returns up to October–December 2024 had since been filed and taxes duly paid. The GST Department did not oppose the grant of relief and agreed that the issue was covered by earlier decisions of the Court in similar matters. The High Court noted that under Section 29(2)(c) of the CGST Act read with Rule 22 of the CGST Rules, the authorities are empowered to drop cancellation proceedings if pending returns are filed along with payment of tax, interest and late fee. The Bench emphasized that cancellation of GST registration carries serious civil consequences and should not be continued where the taxpayer is willing to regularise defaults. The Bench observed that cancellation of registration carries serious civil consequences affecting the right to carry on business, and therefore, even where the statutory period for filing revocation has expired, constitutional relief can be granted to enable restoration upon full compliance. Accordingly, the Bench directed that the petitioner may approach the concerned GST authority within 60 days seeking restoration of the cancelled registration. The authority was directed to consider the application and restore the registration expeditiously, subject to compliance with the proviso to Rule 22(4) of the CGST Rules and payment of all arrears, interest and late fees. In view of the above, the Bench allowed the writ petition of the Petitioner. Case Title: Shri Pankaj Mohan Vs. The Union of India &Anr. Case No.: WP(C) No. 7342 of 2025 Appearance for Petitioner: Mr. R S Mishra, Ms. M Dey, Ms. B Sarma Appearance for Respondent: Dy.S.G.I., SC, GST Click Here To Read/Download OrderCitation: 2025 LiveLaw (Gau) 75

GST Registration Can Be Restored If Returns And Dues Are Cleared: Gauhati High Court

Rajnandini Dutta

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