GST Officer Must Drop Cancellation Proceedings if Taxpayer Files all Pending Returns and Pays Tax Dues: Gauhati HC

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

The petitioner, Sama Yangfo, runs a business named “M/s Anney Donyi Enterprises“, registered under the Goods and Services Tax (GST) Act.

The tax department had cancelled the petitioner’s GST registration because he failed to file returns for more than six months. Initially, a show cause notice (SCN) was issued asking him to respond, but he failed to reply on time. As a result, a GST order was passed by the Arunachal Pradesh tax authority.

The petitioner before the Gauhati High Court explained that he did not have knowledge about the online procedures and relied on a tax consultant, which caused the delay. He also said that he cleared all pending GST returns and paid the required taxes, interest, and late fees. However, when he tried to apply to restore his registration, the system rejected his request because the due date had expired.

The High Court noted that the proviso to sub-rule (4) of Rule 22 of the Rules of 2017 allows authorities to cancel such proceedings if the taxpayer is willing to submit all the pending returns and make full payment of tax.

The Court allowed the petitioner to approach the tax authority again within two months. It directed officials to reconsider his case and restore his GST registration if he fulfils all the requirements.

The Court also said that the petitioner must pay any remaining dues, including penalties and interest.