GST NEWS BULLETIN

"Delhi HC Upholds Rights of GST Filers: Registration Cannot be Retrospectively Cancelled Solely for Non-Filing of Returns”

Delhi High Court ruled that GST registration cannot be retrospectively cancelled solely for non-filing of returns for six months. The court emphasized the need for additional justifications beyond non-compliance and highlighted the lack of consideration for active business periods. The cancellation order lacked justification beyond the last filed return date (31-12-2021). Case: Raj Enterprises v. Superintendent, Range 25 GST Division [W.P.(C) NO. 15777 OF 2023 & CM NO. 63373 OF 2023].

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Input Tax Credit (ITC) is not accessible to registered individuals if they file returns beyond the statutory period outlined in Section 16(4) of the CGST Act

The Calcutta High Court, in the case of BBA Infrastructure Ltd. v. Senior Joint Commissioner of State Tax, dismissed a writ petition challenging the denial of Input Tax Credit (ITC) due to filing returns beyond the statutory time limit. The court upheld the validity of Section 16(4) of the Central Goods and Services Tax Act, stating that it imposes restrictions on filing belated returns for availing credit. The decision emphasized that conditions for concessions and benefits must be strictly construed and fulfilling eligibility criteria under Section 16(2) is mandatory for availing ITC. The court cited precedents and rejected the petitioner's argument that Section 16(2) has an overriding effect on Section 16(4). The appeal and writ petition were dismissed. The judgment aligns with the view that timely compliance with the statute's conditions is essential for claiming ITC.

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