GST NOTE continue A

Revocation of Cancellation of GST Registration - Impact of ITC

ISSUE:

GST registration has been canceled due to non-filing of return can revoke the registration under the Amnesty Scheme
and the same can claim the unutilized Input Tax Credit during the period of cancellation of registration till the revocation
of cancellation of GST Registration.

As the Judgment of Hon'ble Gujrat High Court at Ahmedabad Bench In The Matter Of:

ALLYSSUM Infra Vs. Union of India [2023 (4) TMI 1123 - GUJARAT HIGH COURT]

Hon'ble High Court Judgement When the competent authority considers the issue of revocation of cancellation of the
GST registration of the assessee under the aforesaid notification, the assessee shall be entitled to lodge its claim for
availment of Input Tax Credit in respect of the period from the cancellation of the registration till the restoration of the
registration.

Conclusion:
After the revocation of cancellation of GST registration, the assessee can claim for availment of the ITC in respect of the
period from the cancellation of the registration till the date of restoration. This Judgment is rightly in favor of the
assessee and fairly justified that the assessee can claim the avail of ITC.

 

GST Registration Can’t be Cancelled Merely Stating a Firm as Bogus

The Allahabad High Court held in M/s Apparent Marketing Private Limited

Issue:-

The department surveyed the petitioner’s business premises and issued a notice proposing the cancellation of
registration. The department proposed the cancellation as the petitioner was found bogus during the inspection.

Hon'ble High Court Judgement

The department could cancel the registration only if the assessee found one of the five conditions of Section 29(2). Since
the statute has not used the word ‘bogus’, the Court ruled that registration under the Act cannot be cancelled by merely
describing the firm as bogus.

Conclusion:-

The Court ruled that the notice seeking to cancel the petitioner’s GST registration remained defective as the reason for
cancellation does not fall under Section 29(2) of the GST Act. Hence, the High Court allowed the petition and set aside
the order passed by the Assistant Commissioner, State-Tax, cancelling the petitioner’s GST registration.

 

Nationwide Drive Turns Up 10,000 Fraud GST Registrations in Week 1

The CBIC has announced through GST Instructions 1/2023 dated 04/05/2023

1. To detect fake GST Registrations and suspicious GSTINs who are passing on Input Tax Credit fraudulently to
recipients without Actual supply of Goods or Services or both and take action against them to prevent any
further revenue loss to the government.

2. Please ensure following compliances/documents are in place:

a Display registration certificate at a clearly visible location at their primary place of business as well as any other
secondary places of business.

b Display GSTIN on its name board at its principal place of business along with every additional place of business.

c Basic original documents like address profit proof and bank details should be readily available which have been
submitted while taking registration.

d Cross verify that all changes has been updated with GST department including changes in Director or Partner
details.

e Accounting Records have been maintained and available as mandated in Section 35 of CGST Act read with CGST
Rule 56.

f In case Visiting officer is not satisfied for genuineness of Registration than following are the possible outcome:

I Blocking of input tax credit in Electronic Credit Ledger as per the provisions of Rule 86A of CGST Rules.

II Provisional attachment of property/Bank accounts, etc as per the provisions of Section-83 of CGST Act

III Suspension and cancellation of the Registration.

IV Other Measures like Investigation, Scrutiny etc.