ITC can be Claimed During Revocation of Cancelled GST Registration: Rajasthan HC [Read Order]

The Rajasthan High Court in its recent judgement has held that the assessee can claim Input Tax Credit(ITC) when the department considers the issue of revocation of Cancelled GST registration.

M/s R.K. Jewelers, the petitioner-firm challenged the order passed by respondent No.4, whereby the GST registration of the petitioner-firm has been cancelled on the ground of non-filing of GST return by it. The appeal filed by the petitioner firm has also been rejected by the Appellate Authority.

During the pendency of the writ petition, the competent authority under the Goods and Services Tax Act, 2017 had issued a notification dated 31.03.2023 and as per the said notification, on the conditions being fulfilled, the cancellation of the registration effected on the ground of non-filing of GST return could be revoked.

It was viewed by the court that the case of the petitioner firm covers the notification dated 31.03.2023 and the petitioner firm can move an application before the competent authority with a prayer for the restoration of its GST registration subject to fulfilment of the conditions mentioned in the notification.

The Rajasthan High Court disposed of the writ petition by giving liberty to the petitioner-firm to apply for restoration of its GST registration before the competent authority, which shall consider and decide the application filed by the petitioner-firm in the light of the notification dated 31.03.2023 issued by the competent authority under the Goods and Services Tax Act, 2017.

The two-judge bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar has held that “when the competent authority considers the issue of revocation of cancellation of petitioner firm GST registration under the notification dated 31.03.2023, the petitioner-firm, shall be entitled to lodge its claim for availment of ITC in respect of the period from the cancellation of the registration till the registration is restored.” 

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