GST Registration Cancellation for Non-Disclosure of Bank Details Quashed: Calcutta HC

Joydeb Karmakar Vs Union of India & Ors. (Calcutta High Court)

Summary: The Calcutta High Court dealt with a writ petition challenging an order dated 16.06.2025 by which the petitioner’s registration under the WBGST Act, 2017 / CGST Act, 2017 had been cancelled for non-submission of bank details. The petitioner expressed willingness to comply with the GST law by paying outstanding tax together with applicable interest, late fees, penalties and fine and contended that non-revocation of registration would seriously prejudice his livelihood and cause financial hardship. He relied upon Kanaklal Sutradhar Vs. State of West Bengal, in which the Court had adopted a compliance-oriented approach to cancellation of GST registration, and Basudeb Karmakar Vs. The Superintendent of CGST and CX, Range VIII, BBD Bag II Division, Kolkata North Commissionerate and Ors, which recognised that cancellation of GST registration has serious civil consequences and disables an assessee from carrying on business.

The petitioner explained that at the time of registration he had disclosed a bank account jointly held with his elder brother, but after differences arose between them they separated and opened separate accounts, which change was not informed to the GST authorities. The CGST authorities opposed the petition, pointing out that a letter dated 11.02.2025 seeking clarification regarding multiple GST registrations under a single bank account remained unanswered; consequently, a show cause notice dated 07.03.2025 was issued for cancellation under Rule 21 Clause D for violation of Rule 10A. They further submitted that the petitioner had not preferred an appeal against the cancellation order and had delayed approaching the Court.