The Gauhati High Court has granted relief to a GST-registered trader whose registration was suspended for non-filing of returns for over six months, directing the GST authorities to consider revocation of the suspension and restoration of the registration upon the taxpayer filing pending returns and clearing all statutory dues. 

The bench of Justice Kardak Ete reiterated that where a taxpayer is willing to comply with the requirements of the GST law, the authorities should examine the request for restoration in accordance with Rule 22 of the CGST Rules, 2017. 

The petitioner/assessee was carrying on business under the name M/s BSMD at Basar in Arunachal Pradesh with a valid GST registration. However, the GST authorities suspended his registration through an order dated 14 January 2023 after finding that he had failed to furnish GST returns continuously for six months, a ground for cancellation under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017. 

Buy Now: GST Judgements E-Compilation – June 2026

According to the petitioner, he was unaware of the show cause notice and the subsequent proceedings that culminated in suspension of his GST registration. He contended that the default was not deliberate and occurred because of serious domestic and financial difficulties. The petitioner stated that he had to frequently travel to his native village in Assam to care for his aged and ailing parents, which disrupted his business activities and prevented timely statutory compliance. 

The petitioner further submitted that once he became aware of the suspension, he attempted to access the GST portal to file pending returns and clear outstanding liabilities. However, due to the suspension of his GST registration, he was unable to complete the required compliances electronically. He had also submitted a representation seeking restoration of the registration, but no action had been taken on it. 

During the hearing, the petitioner relied upon earlier decisions of the Gauhati High Court, including Dug Rade v. Union of India and Mrs. Bina Taipodia v. Union of India, where the Court had granted similar relief to taxpayers whose GST registrations had been cancelled or suspended for non-filing of returns. The counsel for the GST Department and the Union of India fairly acknowledged that the present case was covered by those earlier judgments and agreed that similar relief could be granted. 

The court noted that the issue involved in the present petition had already been settled in earlier judgments of the Court. Referring to those decisions, the Court reiterated that Rule 22(4) of the CGST Rules contains a beneficial proviso permitting the proper officer to drop cancellation proceedings where the taxpayer furnishes all pending returns and pays the applicable tax, interest and late fees.

The Court also observed that cancellation or suspension of GST registration has significant civil consequences for a business. Therefore, where a taxpayer expresses readiness to regularise defaults by filing pending returns and paying statutory liabilities, the authorities should consider restoration of registration in accordance with law instead of mechanically continuing the suspension. 

Disposing of the writ petition, the High Court directed the petitioner to submit an application before the concerned GST authorities within 20 days seeking revocation of the suspension and restoration of his GST registration.

The Court further directed the respondent authorities to verify the application, consider it in accordance with law, and thereafter take necessary steps for revocation of the suspension and restoration of the GST registration.

Membership Required to Access Case Details & Order Copy

To view the complete Case Details and Download Order Copy, you must have an active membership. Please subscribe to continue.

Read More: GST SCN Against Dead Proprietor Invalid: Orissa High Court