Order of Rejection to Be Set Aside as There Was No Restriction for Persons Outside State to Seek GST Registration in Andhra Pradesh | HC

Case Details: Tirumala Balaji Marbles and Granites vs. Assistant Commissioner ST - [2025] 171 taxmann.com 594 (Andhra Pradesh)

Judiciary and Counsel Details

• R. Raghunandan Rao & Harinath. N, JJ.
• Anil Kumar Bezawada, for the Petitioner.

Facts of the Case

The petitioner, a business entity seeking to establish operations in Andhra Pradesh, applied for GST registration under the Andhra Pradesh Goods and Services Tax Act, 2017. The application, filed on 19.10.2024, was rejected by the first respondent through an order dated 04.11.2024. The rejection was based on the ground that neither the applicant nor the authorized representative belonged to the state of Andhra Pradesh. Aggrieved by this decision, the petitioner filed a writ petition before the Andhra Pradesh High Court, contending that such rejection was arbitrary and lacked statutory basis. The petitioner argued that the APGST Act did not impose any restriction on non-residents seeking registration and that the denial violated its fundamental right to conduct business under Article 19(1)(g) of the Constitution of India.

High Court Held

The Hon’ble Andhra Pradesh High Court held that the rejection of GST registration solely on the ground that the applicant and its authorized representative did not belong to Andhra Pradesh was not legally sustainable. It was observed that no statutory provision under the APGST Act restricted a person from another state from obtaining GST registration in Andhra Pradesh. The court further emphasized that mere apprehension of tax evasion could not override the petitioner’s fundamental right to carry on business. Accordingly, the order of rejection was set aside, and the respondents were directed to grant GST registration to the petitioner, while retaining the authority to monitor compliance and take appropriate measures to prevent tax evasion.