GST registration can be cancelled retrospectively only if ITC denial is intended & warranted 

Maurya Industries Vs Union of India & Anr (Delhi High Court)

In a recent judgment on the case of Maurya Industries Vs Union of India & Anr, the Delhi High Court addressed the cancellation of GST registration retrospectively. The petitioner challenged a show cause notice and subsequent cancellation order, arguing that the cancellation with retrospective effect was unjustified. The court ruled that GST registration could only be cancelled retrospectively if warranted by the denial of Input Tax Credit (ITC) and held that subjective satisfaction of the proper officer must be based on objective criteria.

Background and Facts:

1. The petitioner, Maurya Industries, applied for cancellation of its GST registration on 12.04.2023, citing business closure due to losses.

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