Payment of Revenue Dues and Agreement to pay Revenue Arrears: Calcutta HC orders Restoration of cancelled GST Registration [Read Order]

The Calcutta High Court ordered the restoration of cancelled GST Registration on the ground of payment of revenue dues and agreement to pay revenue arrears.

The petitioner, Ranjan Ghosh, filed the writ petition under Article 226 of the Constitution of India for restoration of cancelled GST Registration

The main issue involved in this writ petition relates to cancellation of petitioner’s registration on the ground of non-filing of return. The Petitioner submitted that after the cancellation of its registration, it has paid all the revenue due and further agreed to pay if any revenue arrear is due which is required to be paid for restoring of its registration.

Cancellation of GST registration describes that the taxpayer will no longer be a GST registered person and they will no longer have to pay or collect the tax. Taxpayers who have previously registered under the GST Act may apply to cancel the registration of a GST at a certain time they feel compelled to close their business or in any other scenario.

 Following are the implications of cancellations of GST registration

• The taxpayer is unable to collect and could no longer pay GST;

• There would be no need for the taxpayer to file any GST return.

• Registration under the GST is mandatory for individual businesses. If GST registration is decided to cancel and business continues, it will result in a GST violation and heavy penance.

The Court of Justice Md Nizamuddin noted that “The writ petition is disposed of by directing the respondent CGST authority concerned to restore the petitioner’s registration and open the portal for a period of 15 days from date to enable the petitioner to make the payment of revenue due if any by the respondent authority concerned within 31st March, 2023.

The Court further noted that if the petitioner fails to make the payment of revenue due after indication of the amount by the CGST authority, the respondent authority concerned shall be free to again block the portal again and cancel the registration.

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