Home GST GSTIN Can’t Be Cancelled Retrospectively for Non-Filing of GST Returns

GSTIN Can’t Be Cancelled Retrospectively for Non-Filing of GST Returns

GSTIN Can’t Be Cancelled Retrospectively for Non-Filing of GST Returns
Delhi HC's Order for Aryan Timber Store

GST registration couldn’t be cancelled with the retrospective impact for less than non-filing of the tax returns, the Delhi Excessive Court docket dominated.

The bench comprising Justice Sanjeev Sachdev and Justice Ravinder Dudeja emphasised that the non-filing of GST returns by a taxpayer for a sure interval doesn’t robotically warrant the retrospective cancellation of the taxpayer’s registration. The courtroom noticed that such cancellation mustn’t cowl the interval when the returns have been filed, and the taxpayer remained in compliance.

The petitioner/assessee contested the order, which retroactively annulled the GST registration efficient from July 1, 2017, together with the accompanying GST Present Trigger Discover.

The petitioner ceased enterprise operations on March 31, 2019, and submitted a cancellation request on Might 6, 2019. Subsequently, a Present Trigger Discover was issued, requiring the petitioner to clarify why the registration shouldn’t be cancelled.

The order aimed toward registration cancellation lacks supporting proof on report justifying the retrospective nature of the cancellation.

The present trigger discover fails to adequately inform the petitioner that retrospective cancellation of registration is into consideration. Consequently, the petitioner was disadvantaged of the chance to boost objections towards the retrospective cancellation.

Upon submitting an utility for the cancellation of GST registration, the petitioner’s registration was annulled. With the cancellation in impact, the petitioner had no obligation to file any additional returns. The rationale for cancelling registration based mostly on the petitioner’s failure to file returns is untenable, notably contemplating the retrospective nature of the cancellation.

In keeping with Part 29(2) of the CGST, 2017, the competent officer has the authority to cancel the GST registration of a person, figuring out the efficient date, together with a retrospective one, underneath specified situations.

The cancellation of registration with a retrospective impression shouldn’t be a mechanical course of. Non-filing of returns for a sure interval doesn’t robotically necessitate retrospective cancellation, particularly if the taxpayer was compliant when submitting returns.

Learn Additionally: GSTIN Cancellation: Delhi HC Emphasis Officers to Study the Info Earlier than Reaching a Conclusion

The courtroom dominated that the cancellation order be adjusted to take impact from Might 6, 2019, the date when the petitioner initially requested registration cancellation. It’s explicitly said that the respondents retain the fitting to pursue any lawful measures for the restoration of taxes, penalties, or curiosity owed by the petitioner.


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