Need clarity on vat return

Assuming that you have obtained voluntary registration under Sec 17 (6)(a) of the Telangana VAT Act.

As per Rule 8 (3) of Telangana VAT Rules, where a VAT dealer registered under clause (a) of sub-section (6) of Section 17 fails to file timely tax returns and fails to pay any tax due and his taxable turnover remains under the limits specified, the authority prescribed shall cancel such registration after giving the VAT dealer the opportunity of being heard.

So you may continue to charge VAT and file returns, in order to avoid cancellation of registration.