GST Returns Not Filed due to Medical Reasons: Madras HC Orders to restore Registration Post- Tax and Interest Payment without ITC Adjustment [Read Order]

The Madras High Court has ordered the restoration of GST ( Goods and Services Tax ) registration which had been cancelled due to the petitioner’s failure to file returns on time, citing medical reasons on payment of tax and interest without adjusting from unutilised Input Tax Credit ( ITC ).

The petitioner, Tvl.Tharaga and Co, represented by its partner, Mr. Sukumar Chandran, explained that he was suffering from Type II Diabetes Mellitus and, due to health issues, could not attend to statutory obligations, including the filing of monthly GST returns. This delay led the respondent authorities to cancel the registration through an order dated 17 March 2025.

Appearing before Justice Krishnan Ramasamy, counsel for the petitioner submitted that the firm was ready to file all pending returns and pay the full tax dues along with applicable interest and penalties.

The request was for the court to revoke the cancellation and restore the registration. The counsel for the revenue confirmed the cancellation but did not oppose the plea, noting the petitioner’s willingness to settle the outstanding liabilities.

The court found the medical reason found to be genuine and decided to revoke the cancellation, but imposed specific conditions. These included filing all pending returns for the relevant period within four weeks from restoration, paying the entire tax and interest along with late fees, and strictly prohibiting the use of any unutilised Input Tax Credit (ITC) for settling these past dues.

The court clarified that any ITC in the petitioner’s account could only be used for future liabilities after scrutiny and approval by the competent authority.

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