📰 𝗗𝗲𝗹𝗵𝗶 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗥𝗲𝘁𝗿𝗼𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗚𝗦𝗧 𝗥𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝘀 𝗝𝘂𝘀𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻

📢 Court’s Statement: "Retrospective cancellation of GST registration without valid reason is an arbitrary exercise of power."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Ashish Garg Proprietor Shri Radhey Traders vs Assistant Commissioner of State GST • 𝗖𝗼𝘂𝗿𝘁: Delhi High Court • 𝗗𝗮𝘁𝗲: 20-Jul-2023

𝗜𝘀𝘀𝘂𝗲: Ashish Garg challenged the retrospective cancellation of his GST registration by the authorities, asserting that it was done without valid justification.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The petitioner argued that the GST authorities had acted arbitrarily in canceling the registration from a retrospective date, which he claimed was unjustified. Garg also contended that he should not be compelled to file GST returns for periods after he had ceased operations.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Delhi High Court upheld the discretion of GST authorities to cancel registrations retrospectively but emphasized that this power cannot be exercised arbitrarily. The court found no evidence justifying the retrospective cancellation of Garg's GST registration and ruled that he should not be obligated to file returns for the period following the discontinuation of his business.

📜 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: This ruling provides crucial clarity regarding the conditions under which retrospective cancellations can occur, reinforcing the principle that taxpayers should not face penalties without proper justification. It serves as a reminder to GST authorities to exercise their powers judiciously. Team GSTpanacea 7503031378