The Gauhati High Court has provided big relief to small taxpayers who have been impacted by delays in filing their tax returns.
In a recent decision, the Court allowed a proprietor from Hailakandi to apply for the reinstatement of his cancelled GST registration (GSTIN). However, this revival is contingent upon the fulfilment of all pending statutory requirements and the settlement of any outstanding dues.
The bench of Justice Sanjay Kumar Medhi has stated that Rule 22(4) of the CGST Rules, which provides that if a taxpayer, rather than answering to a cancellation notice, files all pending returns and pays all dues, the proper officer can drop the cancellation proceedings and restore registration via Form REG-20.
The GST department, as per the petition, has issued an SCN dated August 13, 2024, cautioning that failure to answer within 30 days can result in ex parte cancellation. But the Superintendent of CGST subsequently cancelled the registration dated September 13, 2024, without giving reasons in the order.
The applicant stated that, due to illness, he was unable to access the GST portal or respond to the notice within the required time and only discovered the cancellation later.
The applicant, after recovering from his illness, has submitted all outstanding returns up to September 2024 and filed all GST dues, late fees, and interest. But he cannot apply for the revocation as the portal shows that the 270-day revocation window has expired. His appeal was rejected on November 10, 2025, pushing him to approach the High Court.
The court said that the same provision was applicable as the cancellation was invoked u/s 29(2)(c) for non-filing of returns.
Relying on the precedent set by a similar 2023 judgment (the Sanjoy Nath case), the Court determined that the cancellation of a GST registration has serious civil consequences. Therefore, if a taxpayer demonstrates a willingness to become compliant, their registration should be legally restored.
The court disposing of the petition allowed the applicant to approach the related GST authority within 2 months. If he files all the returns and clears all dues as needed under Rule 22(4), then the officer should acknowledge his application and decide on restoration within 60 days of obtaining the order of the HC.
Also, the court mentioned that u/s 73(10), the limitation for issuing the demand notices shall be evaluated from the date of the present order, except for FY 2024-25. It reaffirmed that the applicant shall remain obligated to file all arrears, penalties, interest, and late fees.
| Applicant Name | Monojit Debnath vs. Union of India and 3 Ors |
| Case No. | WP(C)/6486/2025 |
| Petitioner | A. K. Gupta, Ms B. Sarma, Mr R.S. Mishra |
| Respondent | DY.S.G.I. |
| Gauhati High Court | Read Order |
