Business Slowdown was Genuine Reason for Non Filing of Return: Madras HC Quashes GST Registration Cancellation with ₹10K Payment

The Madras High Court has quashed a "GST registration cancellation," ruling that "business slowdown was a genuine reason for non-filing of return," and directed "₹10,000 payment." The court recognized that a genuine business downturn leading to temporary operational difficulties can be a valid reason for delayed filing. While allowing the restoration of registration, a nominal cost was imposed. This decision offers relief to small businesses facing genuine hardships, preventing arbitrary cancellation of GST registrations solely based on temporary non-compliance due to unforeseen circumstances.