M/s NIT Traders & Digantajit Baruah v. Union of India & Ors.

Whether GST Registration Cancelled for Non-Filing of Returns Can Be Restored Upon Subsequent Compliance Under Rule 22(4)?

Introduction

This judgment delivered by the Gauhati High Court addresses an important issue concerning cancellation and restoration of GST registration. The Court examined whether a taxpayer whose registration was cancelled due to continuous non-filing of returns can subsequently seek restoration by complying with statutory requirements prescribed under the GST law.

The case highlights the balance between tax compliance and the objective of ensuring that genuine taxpayers are not permanently excluded from the GST framework merely because of past defaults. The Court emphasized that cancellation of GST registration has serious civil and commercial consequences and therefore statutory provisions enabling restoration should receive a liberal and pragmatic interpretation.