GST Depart Refuses to Cancel GST Registration Revocation Due to Unfiled GST Returns: Patna HC grants 30 days to File [Read Order]

In a recent ruling, the Patna High Court granted 30 days to file the unfiled Goods and Services Tax ( GST ) returns to cancel GST registration revocation.

Utkrisht Logistics, the petitioner challenged the cancellation of its GST registration revoked retroactively from April 1, 2023, by an order dated January 29, 2024. In the order, the authorities refused to cancel the revocation order for not filing the pending returns.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

The petitioner invoked  Rule 23 of the Central Goods and Services Tax Rules, 2017 which explained the procedure for revocation of cancellation under Section 30 of the CGST Act.

The petitioner’s counsel argued that they should be allowed to file returns between the date of cancellation and the revocation order.

The counsel argued that the second proviso of Rule 23 mandates that no application for revocation can be made unless the registered person had furnished the returns which were due before the cancellation.

The petitioner’s counsel further argued that the third proviso which specifies that,  upon revocation of cancellation under Section 30 of the CGST Act, the registered person must file the returns for the period starting from the date of the cancellation order to the date of the order for revocation

The bench comprising the Chief Justice of Patna and Justice Partha Sarthy observed that the fourth proviso of Rule 23 of the CGST Rules was applicable to the petitioner’s case since the petitioner’s registration had been canceled with retrospective effect from 01.04.2023.

The court noted that as per the provision, the registered person must file returns for the entire period from the date of cancellation to the date of revocation within 30 days of the revocation in cases of retrospective cancellation.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

Therefore, the court set aside the impugned order and directed the assessing officer to revoke the cancellation. The petitioner was given 30 days from the revocation date to file all pending returns.

The court clarified that if the petitioner failed to file the returns within this period, the cancellation of registration would stand valid again. Thus, the petitioner’s writ petition was allowed.

To Read the full text of the Order CLICK HERE

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