The Hon'ble Rajasthan High Court in M/s R.K. Jewelers v. Union of India [D.B. CWP No. 4236 of 2023 dated April 26, 2023] has made an important decision regarding the revocation of cancelled GST registration and Input Tax Credit (ITC) claims. The case involved a petition filed by M/s R.K. Jewelers challenging the cancellation of their GST registration on the grounds of non-filing of GST return.
The Court observed that a notification dated March 31, 2023 had been issued, according to which, the cancellation of registration due to non-filing of GST return could be revoked if certain conditions are met. The Court held that the Petitioner was covered under the notification and can file an application before the competent authority for the restoration of their GST registration subject to fulfilment of the specified conditions.
The Court directed the Petitioner to file an application for the restoration of their GST registration before the competent authority. It further clarified that during the revocation process, the Petitioner is entitled to claim ITC for the period from the cancellation of the registration till the restoration of the registration.
The relevant provision for the case was Section 30 of the Central Goods and Services Tax Act, 2017, which deals with the revocation of cancellation of registration. The section allows a registered person whose registration is cancelled to apply for the revocation of cancellation under certain conditions, subject to restrictions and within a specified period.
This decision by the Hon'ble Rajasthan High Court provides some relief to taxpayers whose GST registration has been cancelled due to non-filing of returns. They can now apply for the revocation of cancellation and claim ITC during the revocation process. However, it is important to note that the restoration of registration and ITC claims are subject to fulfilment of specified conditions and restrictions as prescribed by the competent authority.
For any further doubt on matters related to GST registration, its compliance and ITC claims, feel free to contact ASC Group.
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