Gujarat HC Directs Revocation Of GST Registration Cancellation After Tax Deposit Verification [Read Order]

Gujarat: The Gujarat High Court has directed the respondent authorities to revoke the cancellation of a GST registration, observing that once the taxpayer has deposited the outstanding tax, interest, and late fee, revocation should follow upon verification.

A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi delivered the order on November 6, 2025, while disposing of R/Special Civil Application No. 14354 of 2025, filed by Abound IT Services through Proprietor Mr. Sandip Prafulbhai Vekariya, challenging the cancellation of its GST registration.

The petitioner’s registration had been cancelled under Section 29(2)(c) of the Gujarat Goods and Services Tax Act, 2017, for non-filing of returns from March 2024 onwards. The petitioner’s appeal was dismissed on the ground of delay. Subsequently, the petitioner approached the High Court contending that the tax dues for the relevant period had been fully computed and discharged through deposits in the Electronic Cash Ledger.

The petitioner produced an affidavit showing payment of ₹46,93,112 — including ₹39,72,494 as tax dues, ₹5,26,632 as interest, and ₹1,35,020 as late fees — under Section 49 of the Gujarat GST Act and Rule 87 of the GST Rules.

The Assistant Government Pleader, Ms. Shrunjal Shah, confirmed, on instructions from the State Tax Officer, that the said payment had been made and recorded in the GSTN portal. She further submitted that upon filing of the pending returns, the authorities would verify the correctness of the tax liability and act accordingly in accordance with law.

Recording these submissions, the Court held that since the petitioner had already deposited the outstanding dues equivalent to what would have been payable upon timely filing, the authorities should permit the filing of returns and revoke the cancellation order accordingly.

The Bench observed:

“Since the petitioner has already deposited the outstanding tax with interest, as if the returns would have been duly filed, in the interest of justice, the petitioner is permitted to file GST returns. Upon such compliance, the order of cancellation of registration shall stand revoked.”

The petition was accordingly disposed of, with no order as to costs.

Appearance: Adv. (CA) Abhay Y. Desai appeared for the petitioner, whereas Ms. Shrunjal Shah, AGP, appeared for the respondents.

Case Title: Abound IT Services through Proprietor Mr. Sandip Prafulbhai Vekariya v. State of Gujarat & Ors.

[Read Order]