GST Returns can be filed for the period prior to cancellation of GST registration

The Hon'ble Madras High Court in M. Mallika Mahal v. The Commissioner of Central GST and Central Excise [WP.Nos.10663 of 2022 dated August 17, 2022] held that the assessee should be permitted to file GST returns for the period before the cancellation of GST Registration and make payment of tax dues along with interest. Also, the Court directed the assessing authority to instruct GSTN to make necessary changes in the portal to facilitate these changes.

Facts

M.Mallika Mahal ("the Petitioner") was given several opportunities that were extended to them even though they missed those opportunities post-cancellation of the registrations by way of Amnesty Schemes wherein they were granted an extension of time to take necessary steps to restore the cancelled registrations. There are various remedies mentioned in the Central Goods and Services Act, 2017 ("the CGST Act"). As per Section 30 of the CGST Act, the benefit has to be availed within thirty days from the date of cancellation of the order, but the Petitioner did not avail this remedy.

Further, the other available remedy is to file an appeal before the Appellate Authority ("the Respondent") within a period of three months from the date of communication of the cancellation order to the dealer. Although the Petitioner availed this remedy, with a delay, and the appeal was accompanied by returns for a period of six months with the admitted tax. 

But, the Respondent rejected the appeal against which the present writ petitions have been filed by the Petitioner.

Issue

Whether or not the Petitioner can file GST returns for the period prior to the cancellation of GST registration?

Held

The Hon'ble Madras High Court in WP.Nos.10663 of 2022 dated August 17, 2022, held as under:

• Observed that the Petitioner are permitted to file their GST returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the CGST Act, within a period of 45 days from the date of receipt of a copy of this order, if it has not been already paid.
• Directed the Respondent to take steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web Portal within a period of 45 days from the date of receipt of a copy of this order to allow the Petitioner to file their returns and to pay the tax, penalty, or fine.
• Therefore, the writ petition was allowed by the Hon'ble Court in favor of the Petitioner.

Relevant Provisions

Section 30 of the CGST Act

"Revocation of cancellation of registration.

30. (1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order.

Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,-

(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).

(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:

Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.

(3) The revocation of cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under this Act."