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No GST to be cancelled by merely describing it as “Bogus”

GST Registration may not be cancelled by merely describing it as “Bogus”. The word “bogus” has not been used by the law: High Court

  • GST Registration could be cancelled only if one of the 5 statutory conditions of Section 29(2) is fulfilled.

Complete Section 29(2) of GST Act 

(2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,-

(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

(b) a person paying tax under section 10 has not furnished 3[the return for a financial year beyond three months from the due date of furnishing the said return]​; or

(c) any registered person, other than a person specified in clause (b), has not furnished returns for a 4[such continuous tax period as may be prescribed]; or

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:

Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard:

1[Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.]

High Court : GST Registration may not be cancelled by merely describing it as “Bogus”. The word “bogus” has not been used by the law

    • No registration may be cancelled simply by labelling the firm that received it as “bogus.”
    • The term “bogus” is not used in the statute. The only situation to which such term may refer is one described in Clauses (c) and (d) of Section 29(2)(d) and  of the Act, which is when a registered firm fails to begin operations within six months of its registration.
    • Aside from that, the term “bogus” may also relate to a satisfaction envisioned by Section 29(2)(c) of the Act, which states that a registered firm’s registration may be cancelled if it has not furnished its return for a continuous period of 6 months.

It is further stated that the benefit of notice will apply in instances where the application for revocation or cancellation of registration is either pending or has already been rejected by the proper officer. please feel free to contact us on 9555 555 480 or singh@carajput.com

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