Cancellation of GST Registration for Non-filing of Returns: Madras HC sets Conditions for Restoring Registration

The Madras High Court recently disposed of a writ petition regarding the cancellation of GST registration due to non-filing of GST Returns. The petitioner, Mahesh Kumar Sharma Vijay Sharma, challenged the cancellation order issued after receiving a show cause notice. R. Hemalatha, counsel for the petitioner, cited precedent and argued against the cancellation. The respondent, represented by T.N.C. Kaushik, highlighted discrepancies in the petitioner’s filings. The court, citing previous rulings, directed the petitioner to file pending returns, clear tax dues, interest, and late fees within 45 days. It emphasized that payments should not be adjusted from unutilized Input Tax Credit without proper scrutiny. The petitioner must also comply with filing returns for subsequent periods and declare accurate supplies. The court instructed the respondent to modify the GST Web portal to facilitate these actions within 30 days. This ruling sets specific conditions for the restoration of GST registration, resolving the writ petitions.