2020 (10) TMI 572 - HC - GST

Grant of short extension of the registration granted to the petitioner - limited purposes of the petitioner accessing the system to upload its returns and pay tax, as also to avail applicable input tax credit - HELD THAT - In the instant case, the original certificate of registration (Ext.P1) granted to the petitioner was only for a limited period of about 30 days. In other words, the petitioner did not seek a registration for a period which it could have applied for. However, on account of the Covid-19 pandemic situation, the petitioner could not upload the details regarding the invoices issued during the period for which it was granted registration, and in relation to the work that was done during the said period. When it tried to apply for a short extension of the registration so as to complete the process, it was met with a situation where it could not access the online portal because it did not have a valid registration at that time. No doubt, the period of extension permitted under the statute is already over by now, but I am of the view that the petitioner cannot be faulted for his inability to access the system for the purposes of seeking an extension of the registration period. Thus, by excluding the period during which the petitioner could not access the system for extension of his registration, it is deemed appropriate to direct the respondent to extend the registration period of the petitioner for a period of two weeks from the date of receipt of a copy of this judgment, so that the petitioner can, during the said period of two weeks, upload the details of the invoices raised by him as also details of the input tax credit claimed by him under the GST Act - petition allowed - decided in favor of petitioner.

Summary

Issues:
Non-extension of registration period under GST Act for a firm engaged in event organization due to Covid-19 pandemic.

Analysis:
The petitioner, a firm involved in organizing events, activities, conferences, and seminars, sought an extension of the registration period granted under the GST Act due to the Covid-19 pandemic affecting its ability to complete work and access the online portal for registration extension. The firm had obtained registration from 25.2.2020 to 31.03.2020 but faced challenges in applying for an extension online within the stipulated time. The limited prayer in the writ petition was for a short extension to upload returns, pay tax, and avail input tax credit. The respondent had communicated the inability to extend the registration but advised filing returns for the expired period and claiming unutilized tax if any.

The court considered Section 27 of the GST Act, which addresses Casual Taxable Persons and non-taxable persons, specifying a registration period or 90 days from the effective date of registration, extendable for another 90 days on sufficient cause. Despite the petitioner's initial registration for a short period, the Covid-19 situation hindered the completion of necessary processes within the registration period. The petitioner's inability to access the online portal for extension due to the expired registration was noted. The court acknowledged the statutory extension period had lapsed but recognized the petitioner's predicament in seeking an extension. Therefore, a direction was given to extend the registration for two weeks from the judgment date for uploading invoice details and input tax credit claims, facilitating the petitioner's compliance within the extended period.

In conclusion, the court granted relief to the petitioner by extending the registration period for two weeks to address the challenges faced due to the Covid-19 situation, ensuring the firm could fulfill its tax obligations and claim input tax credit within the extended timeframe.