Accountant’s Error Led to Cancellation of GST Registration, GSTIN to be Restored as Genuine Transactions Were Undertaken | HC

Case Details: E. Dharmaraj v. Assistant Commissioner of State Tax - [2023] 156 taxmann.com 541 (Madras)

Judiciary and Counsel Details

• • Krishnan Ramasamy, J.
  • Ms Akila. S for the Petitioner.
  • Ms E. Ranganayaki, A.G.P., (Taxes) for the Respondent.

Facts of the Case

The petitioner is a proprietor carrying on the business of a Goods Transport Agency (GTA) for which the liability for paying GST is on the service recipient under RCM. The accountant engaged by the petitioner has been continuously filing NIL GSTR-1 and GSTR-3B returns instead of showing the actual outward supplies. On the presumption that the petitioner has not commenced any business, the Department cancelled the GST registration of the petitioner.

The petitioner contended that unless the GST registration is restored, the petitioner is in no position to recover the amount on invoices raised after the date of cancellation and hence, the petitioner prayed for setting aside the cancellation order.

High Court Held

The HC observed that the accountant had filed the NIL returns without taking proper instructions from the petitioner. The HC held that the reason assigned by the petitioner appears to be genuine. The cancellation order is set aside and the GSTIN is directed to be restored.