NON-FILING OF GST RETURNS FOR CONTINUOUS SIX MONTHS

"NON-FILING OF GST RETURNS FOR CONTINUOUS SIX MONTHS"

It has been seen in many cases where the Department cancels GST Registration for non-filing of GSTR-3B for a continuous six months.

In my humble opinion, the Right to Trade or carry on business is under Article 19(1)(g) and

this cannot be restricted because of the hyper-technical reason for the non-filing of return.

Today, sharing with you few judgments on this issue:

1. SMT. RENUKA LAXMAN UPPAR & SRI RENUKA DARSHINI RESTAURANT Vs THE ADDL. COMMISSIONER (APPEALS), BELAGAV

Karnataka High Court

2024-VIL-558-KAR

In the instant case, the respondent has not assigned reasons except stating that the petitioner has not filed returns for six months.

The order cancelling the registration is one without application of mind and adversely affects the right of the petitioner to carryon the business as guaranteed under Article 19(1)(g) of the Constitution of India.

2. Raj Enterprises

Delhi High Court

(2024) 83 GSTL 180

Non-filing of return for a period of six months or more cannot lead to conclusion that assessee's GST registration was required to be cancelled even for period while it was carrying on its business and duly filing its returns

3. Aditi Agencies

Delhi High Court

(2024) 83 GSTL 237

Mere non-filing of return for some period does not mean that taxpayer's registration is required to be cancelled with retrospective date also covering period when returns were filed and taxpayer was compliant.

4. Mohankar Timber Company

Bombay High Court

(2023) 73 GSTL 638

The petitioner's GSTIN registration was cancelled for not filing returns for six months. Judicial precedents allowed the petitioner to apply for revocation of registration.

5. Ennkay Timbers

Allahabad High Court

(2024) 80 GSTL 43

Where assessee's GST registration was cancelled due to non-filing of returns for consecutive period of six months, in view of legal precedents, registration was to be restored on deposit of suitable amount;

the remaining outstanding amount should be paid in monthly instalments subsequent to restoration of registration.

Hope you found this useful.

Thanks

Abhishek Raja Ram

9810638155