GST Daily
Dear Reader,
Today’s newsletter analytically summarizes the top GST stories reported at?taxmann.com.
The petitioner was engaged in the business of civil work contracts and was registered under GST Act. A show cause notice was issued proposing cancellation of registration, which was not replied to by the petitioner. It could not submit the reply within the stipulated time, and an order came to be passed whereby the registration of the petitioner was cancelled.
Against the said order, the petitioner filed an appeal which was dismissed by the appellate authority on the ground of delay. It filed a writ petition against the order of cancellation of registration and contended that the Order-in-Original was passed on the ground that replies to SCN were not given.
The Honorable High Court noted that the non-submission of a reply to SCN couldn’t be a ground for cancellation of registration. In the instant case, registration was cancelled without assigning any reasons, solely on the grounds that a reply to SCN was not given. The order cancelling registration or any other order passed bereft of any reason and without application of mind does not stand the test of scrutiny under Article 14 of the Constitution of India. Therefore, it was held that the order-in-original and order-in-appeal were to be set aside, and the authority was directed to consider the issue afresh.
As per provision of section 2(62) of The Companies Act, 2013, a “One Person Company” is defined as a company which has only one person as a member. Some issues have been raised by the persons registering as a ‘One Person Company’ while they take GST registration. Upon analysis, GSTN has noticed that the option of choosing One Person Company is not there in the form notified by CGST/SGST Acts and hence not available on the GSTN portal also.
Therefore. The GSTN has issued an advisory that in the ‘Part B’ of GST Registration Form ‘REG-01’, the applicant may select Constitution of Business under the ‘Business Details’ tab using the dropdown list option “Others” if the taxpayer wants to register for GST as “One Person Company”. After selecting the option “Others”, the applicant shall also mention “One Person Company” in the text field and follow the steps for a normal registration application to complete the process.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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