Revocation of GST Registration Cancellation Allowed Upon Payment of Dues

Revocation of GST Registration Cancellation Allowed Upon Payment of Dues

Summary in Key Points:

• Issue: Whether the cancellation of an assessee’s GST registration can be revoked when the assessee has not filed returns for a continuous period but is willing to comply by filing returns and paying outstanding dues.
• Facts: The assessee’s registration was cancelled for non-filing of GST returns for six months. The assessee expressed willingness to file all pending returns and pay any outstanding tax, interest, and penalty.
• Decision: The High Court, following the precedent set in Mohanty Enterprises v. Commissioner, CT & GST, allowed the assessee to apply for revocation of the cancellation order upon fulfilling certain conditions.

Decision:

The High Court ruled in favor of the assessee, allowing them to apply for revocation of the cancellation of their GST registration upon fulfilling the following conditions:

• Filing of Returns: The assessee must furnish all pending GST returns, which they failed to submit earlier.
• Payment of Dues: The assessee must deposit all outstanding dues of tax, interest, and penalty along with their application for revocation.
• Consideration by Authority: Upon receiving the application with the pending returns and dues, the competent authority should consider the assessee’s application and pass an appropriate order.

Important Note: This case demonstrates the High Court’s inclination towards allowing taxpayers to rectify their mistakes and continue their business operations if they demonstrate a genuine willingness to comply with GST regulations. By giving the assessee a chance to revoke the cancellation, the court encourages tax compliance and facilitates business continuity. This approach aligns with the principles of natural justice and provides a fair opportunity to taxpayers who are willing to fulfill their tax obligations.