GST Case Laws Updates: Cancellation of Registration

GST Case Laws Updates: Cancellation of Registration

Issue: The returns were not filed for a continuous period of 6 months basis which Show Cause Notice was issued for cancellation of registration. Taxpayer filled returns only for some tax periods out of the specified tax periods in the SCN against which an order was passed cancelling the registration. The question before the Hon’ble Kerala High Court was whether such an order can be set-aside only on filing of all the due returns or when the taxpayer start complying by filing returns of some tax periods?

The registration of a taxpayer is liable to be cancelled in case of non-compliance with the provisions of law. Section 29 read with rule 21 of the CGST Rules, 2017 provides ten such conditions, non-compliance for which leads to direct cancellation of registration. One such condition in clause (h) to rule 21 is non-filing of GST returns for the continuous period of six months.

One of the conditions for revocation as mentioned in proviso to rule 22(4) is that taxpayer is required to furnish all the pending returns and make full payment of tax dues along-with applicable interest and late fee.

In the instant case of Aisha Padmini vs the Superintendent of Central Tax & Central Excise(2025-VIL-335-KER), it has been held that the cancellation of registration was not premature but rather a result of non-compliance with the mandatory conditions for revocation under rule 22(4) of the CGST Rules, 2017.