GST Registration Cancellation Order under Challenge: Madras HC orders GSTR Filing Prior to Cancellation, Mandates Tax Dues and Interest Payment [Read Order]

The Madras High Court, given the similar issues in the Suguna Cutpiece Center case, pronounced the same judgment, ordering the petitioner to file the Goods and Services Tax Returns ( GSTR ) prior to the GST registration cancellation with payment of tax dues, interest and belated fee.

The petitioner has contested the cancellation of their GST registration. This matter aligns with the precedent set by the Court in Suguna Cutpiece Center v. the Appellate Deputy Commissioner(ST) GST and others, Salem (2022), where specific guidelines were outlined:

i. The petitioner is directed to file returns for the period preceding the registration cancellation, along with tax dues, interest, and belated filing fees within 45 days.

ii. Payments must not be sourced from unutilized or unclaimed Input Tax Credit.

iii. Unutilized Input Tax Credit requires scrutiny and approval by the appropriate departmental officer before utilization.

iv. Approved Input Tax Credit may be used for future tax liabilities.

v. Correct value of supplies must be declared for subsequent period GST payments and returns.

vi. Approval from respondents or competent authority is necessary for utilizing earned Input Tax Credit.

vii. Registration is reinstated upon tax payment, penalty, and return filing.

viii. The respondents must instruct GST Network, New Delhi, to adapt the GST Web portal accordingly.

ix. Respondents are given 30 days to implement the above directives.

Given the similarity of the issues, a Single bench of Justice C. Saravanan granted the the writ petition following the guidelines from Suguna Cutpiece’s case. No costs are imposed, and the connected miscellaneous petition is closed.

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