GST registration can’t be cancelled retrospectively:

[2024] 158 taxmann.com 661 (Delhi)

HIGH COURT OF DELHI

Aryan Timber Store

v.

Sales Tax Officer

SANJEEV SACHDEVA AND RAVINDER DUDEJA, JJ.

W.P.(C) NO. 628 OF 2024
CM. APPEAL NOS. 2749 AND 2748 OF 2024

JANUARY  18, 2024 

GST Registration cannot be cancelled with retrospective effect mechanically just because assessee failed to file returns. It can be cancelled only if proper officer deems it fit to do so. Such satisfaction could not be subjective but must be based on some objective criteria – Merely because assessee had not filed returns for some period does not mean that assessee’s registration is required to be cancelled with retrospective date also covering period when returns were filed and assessee was compliant.

The Delhi High Court held that only the case that an assessee does not furnish the returns for a certain duration does not direct that the registration of the assessees needed to be cancelled with the retrospective date indeed covered the duration when the returns get filed and the assessee was compliant.

[Section 29 of Central Goods and Services Tax Act, 2017/Delhi Goods and Services Tax Act, 2017] [Paras 7 to 10] [In favour of assessee]