High Court Restores GST Number cancelled for Non-Filing of Returns due to Health issues of Taxpayer

The Karnataka High Court has given relief to a petitioner whose GST registration was cancelled due to non-filing of returns.

The GST registration of the petitioner, Hi Tech Services, was cancelled in an order dated June 20, 2023, by the GST Department. The registration was cancelled as the petitioner did not file its GST returns for a continuous period of six months.

The petitioner challenged this decision before the Karnataka High Court, where it was submitted that the business was unable to file the GST returns due to the health issues of the owner of the business.

The court observed that the registration was cancelled only because the petitioner failed to file GST returns. It also noted that the petitioner is ready to correct the lapse in filing the return.

As the petitioner’s non-filing reason was genuine, the court set aside the cancellation order. However, it imposed certain conditions on the petitioner. The petitioner was directed to file all pending GST returns for the default period and pay the applicable tax, along with penalties and interest.

The court further said that if the petitioner completes these requirements within four weeks, the concerned tax authority must restore the GST registration.