GST Update

 Desk of CA. Praveen Sharma – 965 Series (CAPS) 

GAUHATI HIGH COURT IN THE CASE OF Ganapati Enterprise and Anr A Proprietorship Firm Situated

In a recent case, a taxpayer’s GST registration was cancelled because returns were not filed for more than six months. The department issued a notice asking for a reply within a short time, but the taxpayer failed to respond due to lack of awareness of online procedures and health issues.

Later, when the taxpayer became aware, the time to reply had already expired and the registration was cancelled. An appeal was also filed, but it was rejected due to delay.

The taxpayer then approached the High Court for relief.

The Court observed that cancellation of GST registration has serious consequences on business. It further noted that if a taxpayer is ready to file all pending returns and pay taxes along with interest and late fees, the authorities have the power to restore the registration.

Accordingly, the Court allowed the taxpayer to approach the department again within a specified time and directed the officer to consider restoration after compliance.

Even if GST registration is cancelled due to non-filing of returns, relief can still be obtained by filing pending returns and clearing dues, subject to approval by the authorities.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS