GST Default in One State Can Block GST Registration In All States in India

The Rajasthan High Court, Jaipur Bench, in Leighton India Contractors Private Limited Vs Union of India  D.B. Civil Writ Petition No. 4042/2026, upheld the denial of GST registration in Rajasthan to a company that had defaulted in filing GST returns in Tamil Nadu. The Court held that although GST operates through parallel CGST and SGST legislations, the framework is designed to ensure uniform compliance across India. A taxpayer who fails to discharge statutory obligations in one State cannot circumvent the law by seeking fresh registration in another State. The Bench emphasized that GST registration is not an absolute right but is conditional upon compliance with statutory requirements, including timely return filing under Section 39 of the CGST Act. The Court observed that permitting fresh registration despite existing defaults would encourage forum shopping and defeat the legislative intent behind the integrated GST regime. Accordingly, the writ petition was dismissed, reaffirming the importance of pan-India GST compliance.

I. Brief Facts & Cause of Action  

The Petitioner, Leighton India Contractors Private Limited, having its registered office at Udaipur, Rajasthan, preferred the instant writ petition under Article 226 of the Constitution of India. The lis pertained to the denial of GST registration in the State of Rajasthan by the Proper Officer under the Central Goods & Services Tax Act, 2017 .