Andhra Pradesh High Court allows revival of cancelled GST registration subject to tax payment and revocation application

Background of the dispute

The writ petition in Boon Estates Vs Union of India (Andhra Pradesh High Court), Writ Petition No: 22095 of 2026, arose from an order dated 04.10.2023 by respondent No.5 cancelling the GST registration of the petitioner, Boon Estates.

The assessee approached the Andhra Pradesh High Court contending that:

  • Owing to unavoidable circumstances, it had temporarily ceased business operations.
  • Because business activities were suspended, it failed to file the required monthly returns under the Goods and Services Tax Act, 2017 (“the Act”).
  • The assessee intended to restart its business, but the cancellation of GST registration effectively prevented any such revival.

The core grievance was that the cancellation of registration had become a practical barrier to restarting commercial operations, even though the assessee was now willing to regularise its tax compliances.

Grievance regarding lack of opportunity

Counsel for Boon Estates argued that:

  • Before the cancellation order was passed, no proper or adequate opportunity of hearing had been provided to the assessee.
  • The assessee therefore viewed the cancellation as having been made in breach of principles of natural justice.
  • In comparable situations, the High Court had previously granted relief by directing the authorities to entertain revocation applications and allow restoration of registration subject to compliance.

To support this position, reliance was placed on an earlier order dated 22.04.2026 in W.P No.9876 of 2026, where the Court had issued directions in materially similar circumstances. The assessee requested disposal of the present writ petition along the same lines.

Stand of the State authorities

Mr. S.A.V.Sai Kumar, learned Assistant Government Pleader for Commercial Tax, appearing for the respondents, did not contest the position that the Court had issued similar directions in earlier matters involving cancellation of GST registration and subsequent revival efforts.

Effectively, the State did not oppose the Court adopting a similar approach in the present case, subject to conditions ensuring payment of tax dues and regulatory compliance.

Court’s approach and reasoning

After hearing both sides, the Andhra Pradesh High Court did not go into a detailed adjudication on the legality of the cancellation order itself. Instead, the Court chose a pragmatic course:

  • It recognised that the assessee desired to revive business and was prepared to clear the outstanding tax dues.
  • It noted that, in comparable matters, the Court had already laid down a framework allowing revocation of cancellation subject to compliance.
  • To maintain consistency and provide an effective remedy, the Court disposed of the writ petition with a set of specific directions guiding both the assessee and the registering authority.

In this manner, the Court balanced the revenue’s interest in securing due tax with the assessee’s interest in restoring its registration and reviving its commercial activities.

Directions issued by the Andhra Pradesh High Court

The High Court disposed of the writ petition by prescribing a concrete step-by-step mechanism for seeking revocation and potential restoration of the cancelled GST registration. The key directions are summarised below.

1. Filing of revocation application

The Court directed that: