2023 (5) TMI 40 - HC - GST

GST Registration Restoration Granted: Petitioner-Firm Wins Right to Reapply with Potential Input Tax Credit Reinstatement

HC ruled in favor of petitioner-firm, allowing application for GST registration restoration under notification dated 31.03.2023. Court directed competent ... Cancellation of registration of petitioner - non-filing of GST returns - HELD THAT:- This Court is of the opinion that the case of the petitioner firm covers with the notification dated 31.03.2023 and the petitioner firm can move an application before the competent authority with a prayer for restoration of its GST registration subject to fulfillment of the conditions mentioned in the said notification. In such circumstances, this writ petition is disposed of with liberty to the petitioner-firm to file application for restoration of its GST registration before the competent authority, which shall consider and decide the application filed by the petitioner-firm in the light of the notification dated 31.03.2023 issued by the competent authority under the Goods and Services Tax Act, 2017 expeditiously. Issues involved: Challenge to GST registration cancellation due to non-filing of returns; Revocation of cancellation u/s GST Act, 2017; Entitlement to Input Tax Credit during cancellation period.Challenge to GST registration cancellation: The writ petition was filed by the petitioner-firm to challenge the cancellation of its GST registration by respondent No.4 on the grounds of non-filing of GST returns. The Appellate Authority also rejected the appeal filed by the petitioner-firm against the cancellation order.Revocation of cancellation u/s GST Act, 2017: During the pendency of the writ petition, a notification dated 31.03.2023 was issued by the competent authority under the Goods and Services Tax Act, 2017. The notification provided a mechanism for revoking the cancellation of registration due to non-filing of GST returns, subject to fulfillment of specified conditions.Entitlement to Input Tax Credit during cancellation period: The High Court held that the petitioner-firm could apply for restoration of its GST registration before the competent authority in line with the conditions outlined in the notification dated 31.03.2023. It was clarified that upon consideration for revocation of cancellation, the petitioner-firm would be eligible to claim Input Tax Credit for the period from the cancellation of registration until its restoration.Therefore, the writ petition was disposed of with liberty granted to the petitioner-firm to submit an application for restoration of its GST registration. The competent authority was directed to promptly review and decide on the application in accordance with the provisions of the notification dated 31.03.2023 under the Goods and Services Tax Act, 2017.