Registration can be revoked if the taxpayer files pending returns and pays taxes.

Opportunity Granted for Revocation of GST Registration Cancellation Upon Filing of Returns and Payment of Dues

Issue: Whether an assessee can be allowed to apply for revocation of cancellation of their GST registration after the registration has been cancelled for non-filing of returns, and under what conditions.

Facts:

• The assessee’s GST registration was cancelled due to non-filing of returns.
• The assessee expressed willingness to file the pending returns and pay all outstanding tax dues, including any applicable penalty.

Decision:

• The court allowed the assessee to file an application for revocation of cancellation under Section 30(2) of the GST Act within two weeks.
• The assessee was also required to file all pending returns and pay the outstanding tax dues along with the application.
• The revenue authorities were directed to consider the assessee’s application and pass appropriate orders within four weeks.

Key Takeaways:

• This case demonstrates the court’s leniency in granting taxpayers an opportunity to rectify their defaults and seek reinstatement of their GST registration.
• By allowing the assessee to apply for revocation upon fulfilling the conditions of filing pending returns and paying outstanding dues, the court provides a chance for the assessee to restore their registration and continue their business operations.
• This decision highlights the importance of compliance with tax laws but also acknowledges the possibility of genuine oversight or difficulty in meeting obligations, offering a path for rectification.