The Hon’ble Madras High Court in the matter of Pitchaiah Venkateshprumal v. Superintendent of CGST & Central Excise [W.P (MD). No. 25743 of 2022 & W.M.P (MD) Nos. 19848 & 19850 of 2022 dated November 14, 2022] has held that cancellation of Goods and Service Tax (“GST”) Registration due to non-filing of returns can be revoked if the assessee files the pending returns and pays the taxes, fines, interest along with fee due.

Issue:

Is it possible to revoke the order cancelling the Petitioner’s GST Registration?

Judgment of the Hon’ble Madras High Court

  • Petitioners were given 45 days to file their returns and pay any taxes, interest, fines, or fees outstanding prior to the cancellation of the Registration, with the caveat that they may not utilise any unused Input Tax Credit (“ITC”) to pay the amounts.
  • Petitioners would be liable for paying GST and filing returns for the period following registration cancellation, and any earned IITC would be allowed to be used only after being scrutinised and approved by the relevant authority.
  • The registration would be reinstated only after the payment of taxes and penalties, as well as the uploading of returns.