Home GST GSTIN Cancellation Must Be Stay from Biz Discontinuation Date, Not Deemed Retrospectively

GSTIN Cancellation Must Be Stay from Biz Discontinuation Date, Not Deemed Retrospectively

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GSTIN Cancellation Must Be Stay from Biz Discontinuation Date, Not Deemed Retrospectively

Delhi HC's Order for M/s Dashmesh Wires and Cables (India)

As a taxpayer has not filed the GST returns for a sure period doesn’t indicate that the registration of the assesses is required to be cancelled with a retrospective date additionally masking the interval when the returns had been filed and the assessee was compliant, Justices Sanjeev Sachdeva and Ravindra Dudeja famous.

The Delhi Excessive Courtroom addressed a case the place the applicant challenged the retrospective cancellation of their GST registration. The applicant, working below the identify M/S Dashmesh Wires and Cables ( India ), engaged within the manufacturing of copper wire and cables. They filed GST returns usually and claimed enter tax credit score ( ITC ) by means of the GST Portal.

The issue arises when the applicant closes their enterprise and makes their premises vacate, making use of for the cancellation of their registration certificates on thirty first March 2020.

Learn Additionally: Lacking Reply to SCN Can’t Take away the Probabilities of Private Listening to U/S 75(4)

The applying was rejected with out furnishing any explicit causes. A SCN was issued directing to the retrospective cancellation of registration from 1st July 2017, with out exact justification.

The courtroom addressed the outcomes of retrospective cancellation in the direction of the enter tax credit score (ITC) of the applicant’s consumer, underscoring the requirement for the right officer to acknowledge these implications earlier than creating a choice.

The courtroom modified the cancellation order to be helpful from the date of enterprise discontinuation, March 31, 2020, whereas allowing the authorities to hunt restoration of any excellent dues following the legislation.

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