Requirement of clear reasons in GST cancellation: retrospective deregistration must be reasoned and consider input tax credit effects.
Cancellation of GST registration must be supported by clear reasons and concrete factual findings in show cause notices and cancellation orders; labels that a registration is "liable to be cancelled" without specifying dues or factual basis constitute mechanical action. Retrospective cancellation cannot be applied routinely; authorities must follow statutory procedure, assess causes for non-filing, consider exceptional disruptions to business operations, and account for the impact on input tax credit before fixing an effective date of cancellation.