Andhra Pradesh High Court Permits Restoration of Cancelled GST Registration Subject to Tax Compliance

The Andhra Pradesh High Court in Creative Technomates Vs Assistant Commissioner ST examined the legality of cancellation of GST registration on account of non-filing of returns and non-payment of tax, and clarified the route available to an assessee for restoration of such cancelled registration. The decision reiterates that where an assessee is willing to regularise past non-compliance by filing returns and paying outstanding dues, the cancellation of registration under the Goods and Services Tax Act, 2017 need not be treated as irreversible.

The Court, while dealing with a writ petition challenging cancellation through FORM GST REG-19, aligned its reasoning with an earlier judgment in W.P. No.18308 of 2024, and laid down a structured process for revocation of cancellation, including timelines and the option for manual filing where online filing is not feasible.

Background of the Dispute

Cancellation of GST Registration

  • The assessee, Creative Technomates, held GST registration under the Goods and Services Tax Act, 2017.
  • The registration was cancelled by the department through an order dated 22.01.2026, issued in FORM GST REG-19.
  • The stated grounds for cancellation were:
    • Non-filing of GST returns; and
    • Non-payment of GST dues.

The assessee, aggrieved by this cancellation, approached the High Court under its writ jurisdiction, seeking interference with the cancellation order and restoration of its GST registration.

Writ Petition Before the High Court

In the writ proceedings, the assessee contended that:

  • The cancellation order dated 22.01.2026 was causing serious prejudice to its business operations.
  • The assessee was willing to comply with all statutory obligations if given an opportunity, including filing of pending returns and remittance of tax dues.

The matter was argued by Sri L. Chandra Obul Reddy, appearing on behalf of the assessee, and the learned Government Pleader for Commercial Taxes for the revenue authorities.

Reliance on Earlier Decision in Similar Facts

The Court recorded that a closely similar situation had already been examined in W.P. No.18308 of 2024, where by an order dated 16.10.2024, certain specific directions had been issued with respect to revocation of GST registration cancellation.

Instead of re‑examining the entire issue afresh, the Court chose to follow the same approach adopted in the earlier writ petition, treating the present matter on parity, given the comparable factual matrix:

  • Both matters involved cancellation of registration due to non-filing of returns and tax non-payment.
  • In both cases, the assessee expressed readiness to comply prospectively and regularise past defaults.