The petitioner sought restoration of its GST registration under...

The petitioner sought restoration of its GST registration under the trade name 'Shri Salasar Balaji Steel'. The court directed the respondent authorities to confirm the petitioner's compliance with the Show Cause Notice and take necessary steps to restore its GST status without delay. As per Rule 86B of CGST/DGST Rules, a registered taxpayer cannot utilize input tax credit (ITC) from the electronic credit ledger to discharge its entire liability towards outward supplies, being limited to a maximum of 99%. The petitioner deposited Rs. 80,000/- to comply with the requirement of paying at least 1% of its liability on outward supplies. The court observed that suspension of GST registration has wide adverse ramifications for the taxpayer's business and can be undertaken only after due consideration. Since the only allegation in the Show Cause Notice was non-compliance with Rule 86B, which stands remedied by the deposit, the court allowed the petition and directed the respondents to forthwith restore the petitioner's GST registration.

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