India

GST Registration Revocation Delay: Gauhati HC Permits Restoration if assessee Files Pending Returns, Pays Full Dues [Read Order]

Posted on by Minakshi




Gauhati HC Relief: GST Registration Restoration Possible Upon Compliance



Gauhati High Court Provides Pathway to Restore Cancelled GST Registrations

In a significant ruling that could offer relief to numerous businesses across the nation, the Gauhati High Court has paved the way for the restoration of cancelled Goods and Services Tax (GST) registrations. The court’s order allows businesses whose GST registrations were revoked to have them reinstated, provided they fulfill certain conditions.

Conditions for GST Registration Restoration

The key requirement for restoring a cancelled GST registration hinges on the assessee demonstrating a commitment to compliance. Specifically, the Gauhati High Court has mandated the following:

  • The assessee must file all pending GST returns that are due.
  • The assessee must remit all outstanding GST dues, including interest and penalties, in full.

By adhering to these directives, businesses that have faced GST registration revocation can potentially have their registration restored, allowing them to resume their operations within the formal economy.

Impact on Assessment Timelines Under CGST Act

The court order also addresses the implications for assessment timelines specified under the Central Goods and Services Tax (CGST) Act. Section 73(10) of the CGST Act outlines the statutory deadlines for the assessment process. The Gauhati High Court has clarified that these deadlines will be recalculated, starting from the date the court issued its order. This adjustment acknowledges the period during which the GST registration was inactive and provides businesses with a more reasonable timeframe to address any assessment-related matters.

Potential Benefits for Businesses

This ruling offers several potential benefits for businesses that have faced GST registration cancellations:

  • Resumption of operations: Restoration of registration enables businesses to legally conduct taxable supplies.
  • Access to input tax credit: Reinstatement allows businesses to claim Input Tax Credit (ITC).
  • Avoidance of penalties: Compliance can help avoid further penalties and legal complications.
Summary:

  • Gauhati HC allows GST registration restoration upon filing pending returns and paying full dues.
  • Assessment deadlines under Section 73(10) of CGST Act will be recalculated from the date of the order.
  • The ruling provides relief to businesses facing GST registration revocation.
Key Takeaways:

  • Businesses with revoked GST registrations now have a clear pathway to reinstatement by meeting compliance requirements.
  • The recalculation of assessment deadlines provides businesses with more time to address related matters.
  • This decision emphasizes the importance of compliance with GST regulations to maintain a valid registration.
  • Businesses should immediately assess their pending returns and outstanding dues to take advantage of this opportunity.