The professional fraternity is concerned about the instant suspension of GST registration from day one. Suspension basically disables business operations from the start by preventing a taxpayer from issuing tax invoices, collecting GST, or using input tax credits.

The Tribunal set aside the service tax demand against the Amway distributor, noting the SCN lacked clarity and held that distributors resell goods on their own account not service providers.

The court also highlighted that Article 5(6) requires services furnished “within India” and “through employees or other personnel.” This mandates a physical nexus. Also Presence without client work (vacation, business development, overlapping days) cannot be counted. The threshold was not met in AY 2020‑21.