Gauhati High Court Permits Restoration of GST Registration Cancelled Due to Filing Defaults Attributed to Consultant's Lapse

Court : Gauhati High Court

Brief :

The Gauhati High Court has observed that cancellation of a GST registration for continuous non-filing of returns may be reconsidered where the taxpayer demonstrates that the default occurred due to the negligence of a tax consultant and expresses readiness to regularize compliance.

The petitioner, a works contract service provider operating under the proprietorship concern M/s Nekib Hussain, challenged the cancellation of his GST registration by the GST authorities. He submitted that his consultant failed to inform him about statutory filing obligations, resulting in non-filing of GST returns for the prescribed period and eventual cancellation of registration.

It was further contended that after cancellation, the petitioner could neither seek revocation within the prescribed timeline nor upload pending returns because access on the GST portal had become restricted. The petitioner, however, undertook to furnish all pending returns and discharge the applicable tax liabilities, interest, penalties, and late fees as required under the GST law.

The Court also took note of an earlier Gauhati High Court decision in Dhirghat Hardware Stores & Another v. Union of India & Others, where similar relief had been granted under comparable circumstances.

Citation :

Md. Nekib Hussain v. Union of India & Others
Neutral Citation: 2026:GAU-AS:7558
Case No.: WP(C) No. 2789 of 2026
Date of Decision: June 1, 2026
Coram: Justice Kardak Ete

Judgement :

Justice Kardak Ete held that the principles laid down in the earlier decision were applicable to the present matter. The Court noted that Rule 22(4) of the CGST Rules, 2017 contemplates a situation where a registered person is willing to rectify defaults by filing pending returns and clearing statutory dues, enabling the competent authority to consider continuation or restoration of registration in accordance with law.

Considering the petitioner’s willingness to comply with all outstanding obligations, the Court found it appropriate to permit him to seek restoration of his GST registration through the prescribed procedure.

Directions Issued

The Court directed that:

• The petitioner may approach the concerned GST authority within 60 days seeking restoration of registration.
• The petitioner shall file all pending GST returns and satisfy the requirements prescribed under Rule 22(4) of the CGST Rules, 2017.
• The petitioner shall clear all outstanding liabilities, including tax, interest, penalty, and late fees.
• Upon compliance with the statutory requirements, the competent authority shall examine the request and take appropriate steps regarding restoration of GST registration in accordance with law.
• For limitation purposes, the period under Section 73(10) of the CGST Act and the corresponding State GST provisions shall be reckoned from the date of the Court's order, except for matters relating to FY 2024-25, which shall be governed by the applicable statutory provisions.