#non-filing of returns

The Karnataka High Court has ruled that GST registration cannot be cancelled solely for non-filing of returns without first granting the taxpayer a fair chance to cure the default. This reinforces that administrative action under the CGST Act must comply with natural justice, protecting small businesses from abrupt penalization without procedural safeguards.

Calcutta High Court rules that GST registration cancellation for non-filing of returns cannot be permanent without affording an opportunity to comply. The court directed restoration of registration within four weeks upon filing pending returns and payment of dues, emphasizing that revenue interests are best served by enabling compliance rather than exclusion.

Uttarakhand High Court holds that GST registration cancellation for non-filing of returns must permit revocation upon deposit of dues and submission of pending returns.

Madras High Court holds that GST registration cancellation for non-filing due to genuine financial hardship must be remediable, not punitive, subject to compliance conditions.