Registration suspension and solution

[Veeresham Veerabomma]

Greetings of the day !!!

In recent times in Telangana majority Registrations of the Tax Payers are under suspension with an allegation of ITC claimed from the Non-existent dealers or ITC availed from retrospective cancelled dealers. In spite of submission of substantial documents and other information department neither dropping the proceedings nor Cancelling the registration of the recipient dealer. Debate must continue, in an direction of Hon'ble High Court suggested the counsel for the Petitioner that registration can be activated but ITC should not avail. Is it the way of pronouncement of the ......... What are the solutions please. Here pertinent to note that majority registrations have been suo moto cancelled/suspended by the department either Central or State during the Fake registration drive. Till such time entire transaction are reflecting in the domain by way of GSTR-2B and status filing the 3B of the so called alleged suppliers.

AI Summary

Taxpayer Registrations Suspended Over ITC Claims from Cancelled Dealers; Call for Fair Treatment and Clarity in GST Issues. In Telangana, many taxpayer registrations have been suspended due to allegations of claiming Input Tax Credit (ITC) from non-existent or retrospectively cancelled dealers. Despite providing documentation, proceedings are neither dropped nor registrations cancelled. The High Court suggested allowing registration activation without ITC availability. A participant advised writing to authorities if suspensions seem unjust, while another noted a Madras High Court decision stating retrospective cancellations shouldn't affect ITC unless collusion exists. The discussion highlights the need for clarity and fair treatment in handling such GST registration issues.