Gauhati HC Allows Restoration of Cancelled GST Registration on Fulfilling Compliance
In a major relief for taxpayers, the Gauhati High Court has ruled that GST registration can be restored if the taxpayer pays full tax dues and files all pending returns. This judgment reinforces the principle that technical lapses should not permanently harm genuine businesses.
📌 Focus keyphrase: GST registration restoration
Background of the Case
- Case Citation: 2025 TAXSCAN (HC) 1173
- Court: Gauhati High Court
- Issue: Whether a taxpayer whose GSTIN was cancelled for non-filing of returns can apply for restoration after completing pending compliances.
The petitioner approached the court after their GST registration was cancelled under Rule 22(1) of the CGST Rules, 2017 due to prolonged non-filing of returns. Despite later clearing all dues and filing returns, the department denied reactivation.
What the Gauhati HC Held
The Hon’ble High Court ruled that:
“Once the taxpayer has discharged full tax liability and filed all pending returns, the department must consider the restoration of GST registration.”
✅ This decision is grounded in Article 14 of the Constitution, promoting fair and equal treatment.
✅ The court further observed that denial of restoration despite full compliance amounts to arbitrary exercise of power.
Key Legal Provisions Involved
| Provision | Relevance |
|---|---|
| Rule 21 & 22 of CGST Rules | Deal with cancellation and revocation of GST registration |
| Section 29 of CGST Act | Allows cancellation by officer for non-compliance |
| Section 30 of CGST Act | Provides for revocation of cancellation within 30 days |
| Article 14, Constitution of India | Ensures equality before law |
Expert View: A Practical Relief for Small Businesses
CA Arvind Menon, GST consultant at Efiletax, notes:
“This judgment is especially relevant for MSMEs who missed return filings due to COVID or cash flow issues. With GST Amnesty 2025 also in play, this ruling strengthens the case for compliance-led relief.”
Step-by-Step Guide: How to Seek GST Registration Restoration
If your GSTIN was cancelled but you’ve now cleared dues and filed returns, follow this:
- Log in to GST Portal
- Navigate to ‘Revocation of Cancellation’ under Services > Registration
- Submit application within 30 days (extended to 90 days with officer approval)
- Attach supporting documents:
- Filed return acknowledgments
- Tax payment challans
- Cover letter or affidavit (if needed)
- Track ARN and await officer’s decision
📝 If the application is rejected, you can approach the jurisdictional High Court quoting this judgment.
Why This Judgment Matters
- Restores livelihood: Many small traders faced cancellation for return defaults.
- Judicial check: Prevents arbitrary and rigid denial by tax officers.
- Promotes voluntary compliance: Encourages taxpayers to regularise defaults.
GST Registration Restoration: Gauhati HC’s Impact Across India?
While this judgment is from the Gauhati HC, it may influence other courts and GST authorities. Already, similar views have been taken by:
- Madras HC (Tvl. Suguna Cutpiece Centre case – 2022)
- Calcutta HC (Aadya Creations LLP – 2024)
🛡️ Taxpayers across states can cite this as persuasive precedent.
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External Resource
📄 Read the Full Order on TaxScan
Summary
Gauhati HC allows restoration of cancelled GST registration if the taxpayer clears dues and files pending returns. The judgment ensures fair treatment under Article 14 and supports revival of small businesses hit by past compliance defaults.
FAQs on GST Registration Restoration
Q1: Can I restore my GST registration after cancellation due to non-filing?
Yes, if you’ve cleared all dues and filed returns, you can apply for restoration under Rule 23 and Section 30.
Q2: What if my revocation application is rejected?
You can file a writ petition in your jurisdictional High Court citing the Gauhati HC or Madras HC precedents.
Q3: Is the Gauhati HC order applicable nationwide?
It has persuasive value across India but is binding only in Assam and northeastern states unless adopted by other HCs.