Cancellation of GST Registration for Non-Filing of Returns for Six Months: Gauhati HC allows Restoration upon Submission of Pending Returns and Dues [Read Order]
The Court clarified that the period under Section 73(10) of the CGST/State GST Act would be counted from the date of the judgment.
Cancellation - GST Registration - Gauhati HC - taxscan
Cancellation - GST Registration - Gauhati HC - taxscan
The High Court of Gauhati,in a matter concerning cancellation of Goods and Service Tax ( GST ) registration for non-filing of returns for six months, allowed restoration of petitioner’s registration upon submission of all pending returns and payment of dues.
S. D. Enterprise,petitioner-assessee, was registered under the Central Goods and Service Tax ( CGST ) Act, 2017 and Assam Goods and Service Tax ( AGST ) Act, 2017 (Reg. No. 18ACUFS8648G1Z7). The petitioner did not file GST returns for six continuous months and was served a show-cause notice on 30.04.2020, asking for a reply within thirty days.
The notice mentioned that the case could be decided ex-parte if no reply was submitted or if the petitioner failed to appear for a personal hearing, but no hearing date was provided.
On 06.10.2020, the Superintendent cancelled the petitioner’s GST registration. The petitioner tried to file an application for revocation of cancellation, but the time limit had expired.
The petitioner then approached the Court by filing the present writ petition.
The petitioner counsel, stated that the petitioner could not file GST returns under Section 39(1) of the CGST Act, 2017 for about six months due to reasons beyond control, but was willing to comply with all pending formalities under Rule 22(4) of the CGST Rules, 2017.
Under Section 29(2)(c) of the Act, an officer could cancel GST registration if returns were not filed for six continuous months. Rule 22 prescribed the procedure for cancellation, including issuing a show-cause notice, allowing a reply, and passing an order of cancellation. The rule also allowed the officer to drop proceedings if the person filed all pending returns and paid dues with interest and late fee.
The counsel also referred to an order dated 26.05.2025 in W.P.(C) No. 2793/2025 (Ansari Construction vs. Union of India), where a petitioner in similar circumstances had relief granted.
Justice Sanjay Kumar Medhi observed that the petitioner’s GST registration had been cancelled under Section 29(2)(c) of the CGST Act, 2017 for not filing returns for six months or more. Considering Rule 22(4) of the CGST Rules, the court held that if the petitioner submitted all pending returns and paid the full tax dues with interest and late fees, the officer had the authority to drop the cancellation proceedings.
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The court directed the petitioner to approach the concerned authority within two months to seek restoration of GST registration. If the petitioner complied with all requirements, the authority was to consider the application and restore the registration as quickly as possible.
The bench also clarified that the period under Section 73(10) of the CGST/State GST Act would be counted from the date of the judgment (except for the financial year 2024-25, which would follow Section 44) and that the petitioner remained liable to pay arrears, including tax, interest, penalty, and late fees.
Accordingly the petition was disposed of.
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