The Gauhati HC has directed GST authorities to consider restoration of GST registration of a proprietorship concern whose registration was cancelled for non-filing of returns.
Saloni Kumari | Jun 5, 2026 |
HC Holds GST Registration Restoration Cannot Be Denied When Taxpayer Files Pending Returns and Clear Dues
The Gauhati High Court ordered GST authorities to restore GST registration and held that where a taxpayer has already filed pending returns and is willing to pay outstanding tax, interest, late fee and penalty, the benefit of restoration cannot be denied.
The petitioner, Mr Tadar Akin, is engaged in business through his proprietorship concern under the name M/s Arunachal Offset Enterprise, registered under the Goods and Services Tax Act, 2017. The GST registration of the petitioner bearing GSTIN No. 12BPA7616K2ZB was cancelled by the tax authorities on the grounds of non-filing of GST returns for a continuous period of six months.
The petitioner argued that the non-filing happened because he was unaware of the show cause notice issued by the department, as he did not possess access to his GST portal login credentials. The petitioner further contended that all pending returns up to June 2021 had already been filed and is willing to pay the entire outstanding tax liability together with applicable interest, late fee and penalty.
The High Court referred to the Supreme Court decisions in Dug Rade v. Union of India and Yamang Siram v. Union of India. The court referred to the proviso to Rule 22(4) of the CGST Rules, 2017, which provides that where a registered person furnishes all pending returns and pays the tax dues along with applicable interest and late fee, the proper officer may drop the cancellation proceedings and pass an order in Form GST REG-20.
Considering that the petitioner had already filed the pending returns and expressed readiness to pay all outstanding tax dues, interest, late fees and penalties, the Gauhati High Court respondent authorities shall verify the compliance made by the petitioner and consider restoration of the GST registration in accordance with law. Accordingly, the writ petition was disposed of with directions that the entire exercise be completed within four weeks from the date of receipt of the certified copy of the order.
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