GST Returns can be filed for the period prior to cancellation of GST registration: Madras High Court

GST Returns can be filed for the period prior to cancellation of GST registration: Madras High Court

FACTS :

In the case of 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 and has directed the GST department to take suitable steps by instructing GST Network, New Delhi to make suitable charges in the architecture of the GST.

The Petitioner has missed the bus with regard to 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”).

First remedy: 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 of this remedy.

Second remedy: The Petitioner can file an appeal before the Appellate Authority within a period of three months from the date of order. The appeal was accompanied by returns for a period of six months with the admitted tax.

ISSUE

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

HELD

The Hon’ble Madras High Court held:

The petitioners are permitted to file their 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 Act, within a period of forty-five (45) days from the date of receipt of a copy of this order, if it has not been already paid.

It is made clear that such payment of Tax, Interest, fine/fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of these petitioners.

On payment of tax, penalty, and uploading of returns, the registration shall stand revived forthwith.

The respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable charges in the architecture of the GST Web Portal to allow these petitioners to file their returns and to pay the tax/penalty/fine.

The above exercise shall be carried out by the respondents within a period of forty-five (45) days from the date of receipt of a copy of this order.