Top Stories Reasons for Non-compliance with GST Notices found Genuine: Madras HC Directs GSTN to allow Return Filing and Payment [Read Order] The bench revoked the GST registration cancellation as the returns were up to date. By Navasree A.M – On November 11, 2024 1:42 pm – 2 mins read Recently, the Madras High court has directed the Goods and Services Tax Network ( GSTN ) to allow the return filing and payment after finding the reasons for Non-Compliance with the GST notices were found to be genuine.

The petitioner, Subramaniam Senthilkumar challenged the GST demand order through the writ petition and prayed to restore the GST registration. The counsel of the petitioner submitted that due to personal reasons, the petitioner could not run the proprietorship firm properly and stopped filing GST Returns from the month of February 2022. He failed to check the GST portal. Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here It was submitted that without giving him an opportunity of hearing, the GST department had cancelled his GST Registration by way of order dated 20.03.2023. He also was unable to prefer the statutory appeal within the limitation period of 6 months as stipulated in the TNGST Act, 2017. Further, the counsel submitted that the petitioner has no tax liability payable to the respondent department and has also filed all the unfiled GST Returns up to the month of December 2023. Therefore, the learned counsel prays for the issuance of appropriate order.

On the contrary, the counsel for the department contended that the petitioner did not file Returns for a continuous period of six months, which led to the passing of the impugned GST order. He further submitted that the revocation of the cancellation of registration will be considered only upon verification of filed Returns. The court noted that the petitioner’s registration was cancelled due to non-compliance in filing Returns, attributed to the unprecedented impact of the personal problems. Get a Copy of The Law of Goods and Services Tax : A Comprehensive Commentary, Click here Further, the bench also acknowledged the petitioner’s submission that he was unaware of the notices and the communications sent through the GST portal. It found that the reason for the non-compliance with the relevant GST provisions was genuine.

Thus, Justice Krishanan Ramasamy ruled that since the petitioner has already filed all the Returns up to date, the cancellation of the registration stands revoked. The bench directed the department to take necessary steps for allowing the petitioner to file the GST returns and make payments. Further, it directed the petitioner to file all the returns for the period till date along with tax/penalty/fine. Accordingly, the