GST registration cannot be used to bypass return-filing defaults in an existing State registration.

A taxpayer already registered in one State cannot evade GST compliance defaults there by seeking registration in another State. The Rajasthan HC noted that the GST framework under the CGST Act, 2017 operates in parallel with State GST law and has both Central and State-specific features. Where the existing State registration is cancelled, kept in abeyance, or otherwise affected by non-compliance with statutory return-filing obligations, the taxpayer must first regularise that default under the Act. A fresh registration request in another State on the same footing was therefore not entertainable, and the writ challenge failed.

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Issues: Whether a taxpayer already registered in one State, but not complying with return-filing obligations there, can seek GST registration in another State.

Analysis: The Court noted that the GST framework under the Central Goods and Services Tax Act, 2017 operates in parallel with the State GST law and has both Central and State-centric features. It held that a registered entity which does not comply with statutory obligations in the State of existing registration, and whose registration is cancelled or kept in abeyance, cannot circumvent that default by seeking registration in another State instead of first complying with the Act.

Conclusion: The request for registration in Rajasthan was not entertainable on the stated ground, and the challenge was rejected.

Final Conclusion: The writ petition failed because non-compliance in the original State disentitled the petitioner from obtaining registration in another State under the GST regime.

Ratio Decidendi: A taxpayer in default of statutory compliance in the State of existing registration cannot bypass that default by applying for GST registration in another State.

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