Non-filing of the returns does not empower the GST Authorities to cancel the registration retrospectively

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..... Non-filing of the returns does not empower the GST Authorities to cancel the registration retrospectively
By: - Vivek Jalan
Goods and Services Tax - GST
Dated:- 19-8-2023

In some cases, such is the interpretation of some of certain field officers that SCNs flow to recipients of earlier supplies, even after a prospective cancellation/suspension of registration of suppliers after the .....

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..... date of such supply. Hence, retrospective cancellation would certainly involve denial of ITC of recipients who have received supplies before the cancellation/suspension of registration. However, It seems that for certain GST field officers cancellation of registration means retrospective cancellation - something which has serious ramifications. Section 29 of the CGST Act, 2017, grants discretion .....

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..... ary powers to the concerned authority to cancel the registration from a retrospective date. However, such powers have to be exercised only in eligible cases. Cancellation on grounds that the petitioner had not filed the returns for a continuous period of six months does not justify retrospective cancellation from the date when the registration was granted. Where the taxpayer has closed its busines .....

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..... s altogether and thereafter stopped filing returns, a stand cannot be taken by the dept. to cancel the GST registration retrospectively thereby even making the earlier supplies of the taxpayer irregular. It's a simple case when one reads the order in hindsight but it had to be contested by the taxpayer in High Court and a decree taken in the case of ASHISH GARG PROPRIETOR SHRI RADHEY TRADERS Vs A .....

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..... SSISTANT COMMISSIONER OF STATE GOODS AND SERVICE TAX, DELHI ZONE 7 WARD 82 [2023 (7) TMI 1229 - DELHI HIGH COURT Reply By KASTURI SETHI as = Dear Sir, Nice article indeed which highlights pro-assessee judgement. It is worth saving as ready recknor for application in future in the interest of the assessees. Also read please Calcutta High Court in the case of M/S. GARGO TRADERS VERSUS THE JO .....

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..... INT COMMISSIONER, COMMERCIAL TAXES (STATE TAX) & ORS. - 2023 (6) TMI 533 - CALCUTTA HIGH COURT Dated: 20-8-2023
Scholarly articles for knowledge sharing by authors, experts, professionals .....

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