Non existance of principal place of business

[bk r]

I am registered with GST Haryna having a principal place of business at A with additional place of buisness at B . The additional place of business was earlier registered with the Central Excise as Registered dealer and we take handsome amount as transitional credit in respect of purchase made by Additional place of business. The department asked telephonicaly to submit the record we submit all the documents regarding stock receipt and invoices regarding puchase of material in respect of additional place of business. There is no physical business activity at the principal place of business and only documents kept here and file return . the business is now being done from additional place of business i.e. from B only. we never done business from principal place of business nor issued invoice from this place . The Central Excise official visited my principal place of business in March 2018.and found that the plot No registered as principal place of business is a vacant plot . This is fact as I vacated the same as the owner want to dismental that building and he dismental the same in August 17. As on date there is no construction on this plot. I kept all the record at my house situated . Department has issued SCN regarding cancellation of registration w.e.f. 01/07/2017 and also proposing disallowing of Trans 1 credit availed and other ITC availed during July to March 2018 in respect of additional place of business,as they proposed cancellation w.e.f. 01/07/2017. there is no activity at the principal place of business. Whether the department action for cancellation of registration w.e.f. 01/07/2017 is correct and proposal regarding recovery of Trans 1 credit and other ITC availed during 01/07/2017 to March 2018 is also correct. My additional place of business is working at the declared place. whether it is necessary to have premises for principal place of business when there is no physical business from that place. .

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AI Summary

GST registration validity questioned where declared principal place found vacant; cancellation notice and ITC recovery proposed.
Cancellation of GST registration and proposed recovery of transitional and other input tax credits were initiated after departmental inspection found the declared principal place of business to be a vacant plot while operations continued at an additional place. The authority issued a show cause notice proposing cancellation effective from the GST commencement and recovery of claimed ITC; however, cancellation requires an opportunity for personal hearing and the registrant must prove bona fides and make representations to the jurisdictional officer to defend registration and entitlement to ITC.