Ashokkumar V Vs State Tax Officer (Madras High Court)
Madras High Court held that based on auditor’s advice, the petitioner failed to comply with GST return provisions. Accordingly, reasons provided for non-compliance with GST provisions appears to be genuine and hence order cancelling registration set aside.
Facts- The petitioner, who is running a shop in the name and style of “Happy Mobiles” had entrusted an Auditor for filing the returns. However, it was advised by his Auditor that there is no requirement to pay any GST if the aggregate revenue in the FY is below a sum of Rs.20,00,000/-. Hence, the petitioner had not filed the GST returns for a period of 6 months. Under these circumstances, the GST Registration of the petitioner was cancelled by the respondent vide order dated 25.09.2018. Being aggrieved, the present appeal is filed.
Conclusion- Held that according to the petitioner, it was advised by his Auditor that there is no requirement to pay any GST if the aggregate revenue in the FY is below a sum of Rs.20,00,000/- and hence, the petitioner had not filed the GST returns for a period of 6 months. The reason provided for non-compliance with the relevant provisions of the Act within the prescribed time, in the considered opinion of this Court, appears to be genuine. Thus, this Court is inclined to revoke the impugned order dated 25.09.2018 passed by the respondent canceling the GST registration of the petitioner. The petitioner is directed to file returns for the period till date, if not filed, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of 4 weeks from the date of restoration of GST Registration of the petitioner.
