Retrospective cancellation of a GST registration without prior notice is invalid. Delhi High Court in Virender Kumar Jain vs Delhi GST Officer [W.P.(C) 9919/2023 & CM APPL. 38188/2023 16-Aug-2023]

The petitioner in this case argued that they had ceased business operations due to a cancerous ailment and requested the cancellation of their GST registration, effective from November 20, 2020.

However, their application for cancellation was denied by the GST authorities. The official has issued a show cause notice to propose the cancellation of the petitioner's registration.

However, the notice fails to mention that the concerned officer has proposed the cancellation with retrospective effect. Additionally, it does not indicate whether any inquiries were conducted to ascertain the petitioner's existence at the declared place of business.

The order cancelling the petitioner's registration simply states that no reply was submitted, despite the petitioner having already filed an application for revocation of the cancellation of their GST Registration.

The issue of the petitioner's availability at their principal place of business did not arise.

Therefore, this could not have been a valid reason for the cancellation of the petitioner's GST Registration, especially with retrospective effect from the date of its issuance, which is July 1, 2017.

Considering the aforementioned points, it would be appropriate to grant the current petition and instruct that the petitioner's cancellation of GST Registration be effective from 20-11-2020,

in accordance with Section 29 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017.