Gauhati HC Orders Restoration of GST Registration u/s 29(2)(c) after Compliance with Filing and Penalties [Read Order]

In a recent ruling, the Gauhati High Court has provided relief to a small business proprietor by directing the Central Goods and Services Tax (CGST) authorities to restore his cancelled GST registration, subject to compliance with statutory requirements.

The matter arose after the Superintendent of CGST, Itanagar Range, cancelled the petitioner Dug Rade’s registration on 31 December 2024 under Section 29(2)(c)of the CGST Act, citing non‑filing of returns for a continuous period of six months. Rade, who operates T.Y. Enterprise in Naharlagun, Arunachal Pradesh, stated that he had lost his GST portal login credentials, thereby preventing timely compliance.

The petitioner had filed all pending returns and deposited the penalty amount once access was regained.

The petitioner's counsel argued that, despite the petitioner's compliance with these obligations, the cancellation order was not revoked. He relied on a recent decision in WP(C) No. 86(AP)/2026[1] , where the Court had directed restoration of registration in similar circumstances.

On the other hand, the revenue counsel did not object to granting similar relief.

After reviewing the petition and precedents, including Pankaj Mohan v. Union of India, noted that Rule 22(4) of the CGST Rules allows cancellation proceedings to be dropped if the taxpayer furnishes all pending returns and pays dues with interest and late fees.

The court pointed out that cancellation of registration entails “serious civil consequences” and must be reconsidered when compliance is achieved.

The bench of Justice Robin Phukan directed Dug Rade to file an application before the CGST authorities within 15 days seeking restoration of his cancelled GST registration.

The High Court also held that once the application is filed, the authorities must verify compliance and restore the registration in accordance with the law within four weeks. Additionally, the petitioner was instructed to obtain a certified copy of the order and submit it to the authorities within one week.

The writ petition was accordingly disposed of.

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