GST registration cancellation cannot rest solely on NIL returns because the statutory cancellation grounds do not include them.

GST registration cannot be cancelled solely because a registered person filed NIL returns for several months. The statutory power to cancel registration is confined to the grounds enumerated in Section 29(2), and filing NIL returns is not among those grounds. Accordingly, a show-cause notice and cancellation order founded only on NIL-return filing lack a valid statutory basis and are invalid.

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Issues: Whether registration under the GST law can be cancelled solely on the ground that the registered person has filed NIL returns for several months.

Analysis: The power to cancel registration is confined to the circumstances enumerated in Section 29(2). Filing NIL returns is not one of the statutory grounds specified for cancellation of registration.

Conclusion: Registration cannot be cancelled solely for filing NIL returns; the show-cause notice and cancellation order were invalid.

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