Gauhati High Court Orders Restoration of GST Registration for Businessman Who Missed Deadlines [Read Order]

Mokibur Rahman, who operates under the name M/s Real Enterprise, a sole proprietor registered under the CGST and Assam GST Acts, was served with a show cause notice in August 2023 to explain his failure to file GST returns for six months. However, he was unable to respond in time due to his unfamiliarity with online filing procedures and relied on a tax consultant for guidance.

By the time Rahman became aware of the notice, the deadline for reply had passed, and an order cancelling his registration was already uploaded on the portal. He subsequently updated all pending returns up to September 2023 and cleared all outstanding tax dues along with applicable interest and late fees. When he attempted to apply for revocation of the cancellation, he was blocked by a system message stating the period for filing this application had expired. His appeal against the cancellation order was dismissed prior to his approaching the High Court.

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During the hearing, Rahman’s counsel expressed the petitioner’s willingness to comply with all statutory formalities to restore his GST registration. The respondents, represented by senior standing counsel, pointed to the dismissal of the earlier appeal as a bar to further challenge. The court examined the relevant provisions under Section 29(2)(c) of the CGST Act and Rule 22 of the CGST Rules, 2017, which deal with the cancellation and potential restoration of GST registrations.

In its order dated August 1, 2025, the Gauhati High Court noted that the statute allows a proper officer to cancel registration if returns remain unfiled for six months but also provides a mechanism to drop cancellation proceedings if the taxpayer files all pending returns and pays the due taxes along with interest and penalty. The court observed that since Mokibur Rahman had fulfilled these conditions and demonstrated his readiness to comply, the authorities should consider restoring his GST registration under the appropriate provisions.

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The petitioner was directed to approach the concerned GST authority within two months from the date of the order for restoration of his registration. Upon receiving the application and verifying compliance with the specified requirements, the authority is to process the request expeditiously and restore the registration. The court also clarified that penalties, interest, and late fees remain payable by the petitioner. Further, the limitation period for assessing the tax dues will start afresh from the date of this order, except for the financial year 2024-25, where a different provision applies.

The order was delivered by Justice Sanjay Kumar Medhi who emphasized that this direction was made in the interest of justice regardless of the earlier dismissal of the petitioner’s appeal.

In Conclusion, The writ petition was accordingly disposed of without any cost.

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