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GST registration was cancelled for six-month non-filing of returns and appeal was rejected; Gauhati High Court allowed restoration subject to filing pending returns and payment of tax, interest, penalty and late fees.

Issue:
Whether cancellation of the Assessee's GST registration under Section 29(2)(c) for non-filing of returns for six continuous months could be remedied when the Assessee was ready to furnish pending returns and discharge the outstanding dues.

Rule:
Section 29(2)(c) permits cancellation where a registered person has not furnished returns for a continuous period of six months. Rule 22(4) of the CGST Rules, 2017, particularly its proviso, provides that where the Assessee furnishes all pending returns and makes full payment of tax dues with applicable interest and late fee, the proper officer may drop the cancellation proceedings and pass an order in FORM GST REG-20.

Application:
The Assessee's registration was cancelled on 30.03.2022 after a show-cause notice dated 09.03.2022 was issued for non-filing of returns for six months. The Assessee subsequently expressed willingness to comply with the requirements under the proviso to Rule 22(4). The Department fairly accepted that the earlier coordinate-bench decision in Dhirghat Hardware Stores covered the same facts and law. The Court therefore found that the earlier precedent squarely applied.

Conclusion:
The High Court permitted the Assessee to approach the concerned authority within 60 days for restoration of GST registration, subject to furnishing all pending returns and payment of tax, interest, penalty and late fees. The authority was directed to consider restoration in accordance with law and process it expeditiously.

Impact Analysis:
The judgment reinforces that cancellation of GST registration for return default is remediable upon compliance with Rule 22(4). It gives a bona fide Assessee an opportunity to regularise statutory compliance and seek restoration rather than suffer continuing consequences of cancellation.

Title : SMTI IVY DUTTA vs. UNION OF INDIA
Court : THE HIGH COURT OF GAUHATI
Citation :WP(C)/2913/2026
Dated : 08-06-2026
Provision : Under Section 29(2)(c), 44, 73(10)