GST Restoration Allowable on Compliance with Rule 22(4) of CGST Rules: Gauhati HC

The Gauhati High Court clarified that a GST registration canceled due to non-compliance can be restored if the taxpayer fulfills the procedural requirements under Rule 22(4) of the CGST Rules. The Court emphasized that restoration is not automatic but contingent on the taxpayer demonstrating adherence to statutory obligations. The ruling arose when a taxpayer sought reinstatement of GST registration after missing certain compliance deadlines. The Court highlighted the importance of balancing strict enforcement with the taxpayer’s right to continue business. It further instructed that authorities must follow due process and not deny restoration arbitrarily. This judgment provides clarity on procedural compliance under GST and ensures that taxpayers are not unduly penalized for lapses when they demonstrate intent and corrective action.