FAQs on GST Registration Cancellation based on High Court Judgments.

FAQs on GST Registration Cancellation based on High Court Judgments.

Please save/bookmark the post for the future.

Q1. Can GST Registration be cancelled for violation of Rule 86B of CGST Rules, 2017 without providing details and particulars or conducting necessary enquiry?

A1. No

Karnataka High Court in M/s J.S. Steel (Prop. Mohammed Sadiq)

2024:KHC: 36036 :: (2024) 10 TMI 39

Q2. Can GST Registration be cancelled on the pretext of violation of Rule 86B?

A2. No, the cancellation of GST Registration on the pretext of violation of Rule 86B is a disproportionate punishment imposed on the petitioner and is liable to be interfered with in the exercise of the power conferred on this Court under Article 226 of the Constitution of India.

Himachal Pradesh High Court in M/s A.M. Enterprises

2024:HHC:8914 :: (2024) 9 TMI 1485

Q3. Can GST Registration be cancelled without proper physical verification of premises?

A3. No, The physical verification of premises was not conducted properly, and a proper opportunity for hearing was not provided, resulting in a violation of the principles of natural justice.

Punjab and Haryana High Court in Gupta Enterprises

(2024) 1 TMI 954

Q4. Can GST Registration be cancelled mechanically based on a letter from the Anti-Evasion Branch without specifying any specific reason or allegation for the proposed cancellation?

A4. No, such cancellation would be in violation of the principles of natural justice. The SCN is also not sustainable for the reason that it fails to meet the necessary standards required of a show-cause notice.

Delhi High Court in Mr. Sanal P

(2023) 79 GSTL 334 :: (2023) 10 TMI 415

Q5. Can GST Registration be cancelled Retrospectively for failure to file return timely?

A5. No, Although, in terms of Section 29 (2) of the CGST Act, the Proper Officer has the power to cancel the GST registration from such date as it may deem fit; however, it is obvious that such powers cannot be used arbitrarily.

Delhi High Court in M/s Feron Life Sciences Pvt. Ltd.

(2024) 7 TMI 1065

Should I continue the series and write part-2 of this? Please reply