GST Registration Restored After Resolving Rs. 911 Credit Ledger Discrepancy Through Mutual Agreement and Compliance

HC directed restoration of petitioner's GST registration after identifying a short balance of Rs. 911 in Electronic Credit Ledger. Petitioner agreed to deposit the amount within two days, enabling registration revival. Court mandated strict compliance with GST regulations upon restoration and disposed of the petition based on mutually agreed terms.

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Issues involved:
Petitioner seeks quashing of the cancellation order of GST Registration, setting aside of show-cause notice, and setting aside of appellate order rejecting the appeal seeking cancellation.

Judgment Details:

Cancellation of GST Registration:
The petitioner sought quashing of the cancellation order of GST Registration dated 27.01.2021. The cancellation was based on a show-cause notice dated 13.01.2020. An appellate order dated 23.11.2022 rejected the appeal seeking cancellation. The Court directed the respondents to consider the revocation application of the petitioner. The respondents were instructed to verify if the petitioner's Electronic Credit Ledger had the necessary balance to cover the tax liability throughout the subject period.

Short Balance in Credit Ledger:
The respondent received instructions stating a short balance of Rs. 9,520 for 194 days in the Credit Ledger of the petitioner. The petitioner was required to pay interest of Rs. 911 before the revocation could be allowed. The petitioner agreed to deposit the amount within two days. Upon depositing the amount, the respondents were directed to proceed with the revocation application, leading to the restoration of the GST Registration in accordance with the law.

Compliance upon Restoration:
It was emphasized that the petitioner must ensure necessary compliance as required under the law once the registration is restored. The petition was disposed of based on the terms agreed upon by the parties involved.

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