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GST Cancellation Ruling: Fresh Review Ordered by Court

Cancellation of GST Registration Overturned Due to Inconsistent Statements Regarding Response to Show Cause Notice

GST: The order for the cancellation of the GST registration, characterized by conflicting statements concerning the receipt of the petitioner’s reply to the show cause notice, has been annulled due to a lack of thorough consideration. The matter has been sent back for a fresh review, allowing the petitioner to submit a reply and have an opportunity for a hearing.

Legal Context: The petitioner contested the cancellation of GST registration, arguing that the cancellation order was issued without proper consideration. The order in question included contradictory statements about the receipt of the petitioner’s response to the show cause notice.

Ruling: The court determined that the registration cancellation order reflected a failure to engage with the facts appropriately. The conflicting statements in the order led to its annulment. The petitioner has been instructed to submit a response to the show cause notice within three weeks, and the adjudicating authority must reassess the situation and issue a new order after providing a hearing opportunity to the petitioner.

Case Reference: Surendra Bahadur Singh v. State of U.P. and Others, Writ Tax No.172 of 2023, decided on August 23, 2023.

Court Proceedings:

The matter was presented to the court, where the petitioner was represented by Sri Vishwjit, accompanied by the learned Standing Counsel for the State.
A writ petition was filed under Article 226 of the Constitution, challenging the original cancellation order issued on February 16, 2023, by the Assistant Commissioner, Sector-3, State Tax, Etawah.
The petitioner’s counsel emphasized that the cancellation order lacked due diligence, evident from the conflicting statements. The relevant excerpt from the order states:
“This refers to your reply dated 16/02/2023 in response to the notice to show cause dated 15/01/2023. Whereas no reply to the notice to show cause has been submitted.”
The counsel highlighted the inconsistency, as the order first acknowledges a reply was filed but later claims none was submitted. He cited a precedent set by a Division Bench of this Court regarding the necessity of thorough consideration in such decisions.
The court emphasized that administrative or quasi-judicial bodies must provide reasons for their decisions, as these are crucial for judicial and administrative integrity. The order found no justification for the severe action of cancellation.
In conclusion, the court quashed the cancellation order dated February 16, 2023, and mandated that the petitioner file a response to the show cause notice within three weeks. The adjudicating authority is directed to hold a fresh hearing and make a new determination.
The petition was thus granted, with the outlined instructions in place.

GST Registration: Address Field Updates and New GSTN Guidelines

GST Portal Update For Enhancements to Address-Related Fields in GST Registration Functionalities

Dear Taxpayers,

The Following enhancements have been made to address-related fields in the registration functionalities: New Registration, Amendment Application (Core & Non-Core), and Geocoding Business Addresses. These enhancements are based on the analysis of tickets and user feedback. The details are as follows:

1. Update in Validations applicable while entering the address in address-related fields.

a. Address is in India:

The fields PIN Code, State, District, and City/Town/Village are interlinked and must be selected from the autosuggestions.
For other fields, taxpayer in addition to alphanumeric values can add limited special characters such as Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes (‘), Hash(#), Period(.), Small Brackets (), Inverted Commas (“”), Colon (:), Semi Colon (;), Underscore (_) and Space. Other Special Characters are not allowed.
Additionally, special characters are not allowed at the beginning of the entry.
Example: When entering an address, you can input “123 Main St. #4, Apt (5A)” but not “#123 Main St.” as special characters like the hash(#) are not permitted at the beginning.

b. Address is outside India:

Zip Code, State, District: Taxpayer would be able to enter all values other than special characters ` {}.
For other fields: Taxpayer can enter alphanumeric values and limited special characters such as Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes (‘), Hash(#), Period(.), Small Brackets (), Inverted Commas (“”), Colon (:), Semi Colon (;), Underscore (_) and Space. Other Special Characters are not allowed.
Additionally, special characters are not allowed at the beginning of the entry for fields other than zip code, district and State.

2. Proper instructions have been added to address fields regarding input values that are allowed or not allowed for the specific field. When hovering over the icon, taxpayers would be able to view these instructions.

3. The above changes would not impact data already saved in the system, even if it contains special characters that are no longer allowed. However, if a taxpayer is filing an amendment application and is editing the tab containing address details, the system would validate the address based on the above logic.

4. The said changes have been made based on the tickets raised, wherein users were not aware of the characters allowed and not allowed in address fields or which fields are editable and which fields are to be selected from a drop-down menu only. One such specific case was when taxpayers were inserting a hash (#) at the beginning of the Building Number field. In such cases, the help desk or support team informed the taxpayer to remove the hash (#) character and submit the application again.

5. The above changes are applicable to Normal Taxpayers – Regular, SEZ Unit, SEZ Developer, Composition, Input Service Distributer and Casual Taxpayers.

6. In addition, the field of locality/sub locality is not mandatory

i. If the Locality/Sub-locality field is left blank or is mapped to another Pin Code, the system displays the following warning messages: “Locality/Sub-locality does not match the Pin Code. Do you want to save the details?” or “You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?”

ii. Example: If you enter Pin Code 123456 but leave the Locality/Sub-locality field blank, you will see the message: “You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?”

iii. In such cases, to continue with the registration, click “YES” to proceed, and the system will allow you to move forward.

Thanks,
Team GSTN

Guide to GST Registration Process in India

GST (Goods and Services Tax) is a significant indirect tax imposed on the supply of goods and services in India. It has streamlined the taxation system by replacing multiple indirect taxes with a single tax. Business owners and professionals providing taxable goods or services may be required to register for GST. This comprehensive guide outlines the process of GST registration, including necessary documents, fees, and how to check registration status.

Step 1: Determine Eligibility

Before proceeding with the registration process, it’s crucial to determine if you are eligible for GST registration. The following criteria determine the eligibility for GST registration:

1. Turnover limit: If your annual aggregate turnover exceeds the prescribed threshold, you are required to register for GST. The turnover threshold varies for different states.

2. Inter-state supply: If you are involved in the supply of goods or services across state boundaries, GST registration is mandatory, regardless of your turnover.

3. Specific businesses: Certain businesses, such as e-commerce operators, agents, and Input service distributors, are required to register for GST, irrespective of their turnover.

Step 2: Gather Required Documents

To initiate the GST registration process, you need to gather the necessary documents. The following are the commonly required documents for GST registration:

PAN card: Permanent Account Number (PAN) card of the business or the applicant.
Identity and address proof: Identity and address proof of the business owner or the authorized signatory.
Business registration proof: Depending on the type of business, you may need to provide registration documents like the certificate of incorporation, partnership deed, or any other relevant registration proof.
Address proof for place of business: Documents such as electricity bill, rent agreement, or property ownership proof to establish the address of your business.
Bank account details: Scanned copy of the first page of the passbook or a canceled cheque displaying the applicant’s name, bank account number, and branch details.

Step 3: Online Registration Process

The GST registration process is primarily conducted online through the GST portal. Follow these steps to register for GST:

Visit the GST portal: Go to the official GST portal (https://www.gst.gov.in/) and click on the “Services” tab. Select “Registration” and then choose “New Registration.”
Fill the application: Fill in the necessary details such as PAN, mobile number, email address, and state in which you are applying for registration. An OTP (One-Time Password) will be sent to the provided mobile number and email for verification.
Application reference number (ARN): After submitting the application, you will receive an Application Reference Number (ARN) on your registered mobile number and email address. Use this ARN for future reference and tracking of your application.
Verification and documentation: The GST officer will verify the details provided and may request additional documents or information. Make sure to respond promptly with the required documents to avoid any delays.
GSTIN and certificate: Upon successful verification, you will receive a GST Identification Number (GSTIN) and a GST registration certificate. The GSTIN is a unique 15-digit identification number for your business.

Step 4: GST Registration Application Status

After completing the registration process, you may want to check the status of your GST registration. Follow these steps to verify your GST registration status:

Visit the GST portal: Go to the official GST portal and navigate to the “Services” tab.
Select “Track Application Status”: Look for the option to track the application status or a similar option.
Enter ARN or TRN: Enter your Application Reference Number (ARN) or Temporary Reference Number (TRN) received during the registration process.
Click on “Search”: Click the “Search” or “Track” button to retrieve the status of your GST registration application.
Check the status: The portal will display the current status of your application, whether it is pending, approved, or rejected. You can also view any additional comments or requirements from the GST officer.

Step 5: Download GST Certificate

Once your GST registration is approved, you can download the GST certificate from the GST portal. Follow these steps to download your GST certificate:

Visit the GST portal: Go to the GST portal and log in to your account using your credentials.
Access dashboard: Once logged in, access your dashboard or the “Services” tab on the GST portal.
Click on “Downloads”: Look for the “Downloads” section or a similar option on the portal.
Select “Certificates”: In the downloads section, choose the option for “Certificates” or “GST Certificate.”
Download the certificate: Click on the “Download” button next to the GST certificate option. The certificate will be downloaded to your device in PDF format.

What is GST Registration?

In the GST Regime, businesses whose turnover exceeds Rs. 40 lacs for Normal category states and 20 lacs for Special category states. There has been no
change in the threshold limits for service providers. Persons providing services need to register if their aggregate turnover exceeds Rs.20 lakh for normal category states and Rs.10 lakh for special category states.

For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.

The threshold of annual turnover for composition scheme was increased to Rs.1.5 crores from 1st April 2019. The taxpayers registered under the scheme have to pay tax quarterly and file returns annually from 1st April 2019. The limit remains unchanged at Rs.75 lacs for North Eastern states & Uttarakhand.

New scheme introduces a fixed tax rate of 6% with 3% CGST and 3% SGST. Independent service providers, as well as mixed suppliers of goods and services
with an annual turnover of up to Rs.50 lacs in the preceding financial year can opt for this scheme.

It is mandatory to Register in GST:

– If you own an e-commerce business
– If you own an inter-state business
– If you are required to pay tax under reverse charge
– If you are required to pay tax under Section 9(5)
– You are a non-resident liable to pay taxes producing taxable supply

So, we can say that There is 4 type of Registration can be done by person who opt for GST registration.

Normal Taxpayer: Most businesses in India fall under this category. You need not provide any deposit to become a normal taxpayer. There is also
no expiry date for taxpayers who fall under this category. You can collect tax and also claim you input tax credit while filling returns.
Casual Taxable Person: Individuals who wish to set up a seasonal shop or stall can opt for this category. You must deposit an advance amount that is
equal to the expected GST liability during the time the stall or seasonal shop is operational. The duration of the GST Registration under this category is 3 months and it can be extended or renewed.
Composition Taxpayer: if you wish to obtain the GST Composition Scheme. You will have to deposit a flat under this category. Input tax credit cannot be obtained under this category.
Non-Resident Taxable Person: If you live outside India, but supply goods to individuals who stay in India, opt for this type of GST Registration.
Similar to the Casual Taxable Person type, you must pay a deposit equal to the expected GST liability during the time the GST registration is active.
The duration for this type of GST registration is usually 3 months, but it can be extended or renewed at the type of expiry.

The process is Online and you can apply for GST No. through GST portal. There are no fees for application on portal. If you are person resident in India and
applying for GST registration then you should check you Aadhaar No. is linked with your Mobile No. or not. Now it is mandatory to verify your mobile with
Aadhaar OTP while making application as per new rule and also you have to upload E-KYC documents on portal.

Documents required to Complete GST Registration

• PAN card.
• Aadhaar card.
• Business address proof.
• Bank account statement and cancelled cheque.
• Incorporation Certificate or the business registration proof.
• Digital Signature.
• Director’s or Promoter’s ID proof, address proof, and photograph.
• Letter of Authorisation or Board Resolution from Authorised Signatory.

Once the relevant documents have been uploaded, an Application Reference Number (ARN) will be sent via SMS and email to confirm the registration. Please Save for further processing of GST application.

After receiving ARN you need to log in again through GST portal and upload fill all the fields which are mandatory and upload relevant documents which are mentioned above.

At last, you will ask to authenticate your Aadhaar details with OTP or Proper officer visit place of business which you have added in application if OTP verification is failed.

GST registration is not an easy process you have to plan every time for your client and then start the work you may seem many problems and drawback so my advice is to read all the amendments carefully and then consult to your client.

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