The Gauhati High Court has granted relief to a city-based hotel proprietor whose GST registration had been cancelled due to non-filing of returns for six consecutive months, allowing him an opportunity to approach tax authorities for restoration.

The bench of Justice Sanjay Kumar Medhi observed that cancellation of GST registration carries serious civil consequences, particularly for small business owners. The Court referred to Rule 22(4) of the CGST Rules, 2017, which allows authorities to drop cancellation proceedings if a taxpayer furnishes all pending returns and pays dues along with interest and late fees.

The case involved Md. Muhibbulah, proprietor of Hotel Haris, who challenged the cancellation of his GST registration by the Superintendent of Central Goods and Services Tax (CGST), Guwahati. The registration was revoked on April 19, 2024, after the petitioner failed to respond to a show cause notice issued in June 2023.

The petitioner argued that he had been unable to access the GST portal due to illness and thus missed the deadline for replying to the notice. Later, he updated all pending returns up to April 2024 and cleared his outstanding GST dues, including interest and late fees. However, when he attempted to apply for revocation of cancellation, the system rejected his application on grounds that the 270-day time limit had already expired.

The Court also noted a similar precedent in Sanjoy Nath vs. Union of India (2023), where restoration was allowed under comparable circumstances.

Accordingly, the High Court directed that the petitioner may file a fresh application within two months before the concerned GST authority. If he complies with all statutory requirements, the officer shall consider restoration of his GST registration “as expeditiously as possible.”

The order further clarified that for the financial year 2024–25, the computation of timelines under GST law would begin from the date of this judgment. The petitioner would also remain liable to pay any arrears, penalties, and late fees.

This ruling provides significant relief to taxpayers who may have defaulted due to genuine difficulties but are willing to regularize their compliance.

Case Details

Case Title: Md. Muhibbullah Versus UOI

Case No.: WP(C)/5229/2025

Date:  05.09.2025

Counsel For  Petitioner:  A K Gupta, Mr. R S Mishra, Ms M Nirola

Counsel For Respondent: DY.S.G.I., SC, GST

Read More: Gauhati High Court Allows Taxpayer to Seek Restoration of Cancelled GST Registration