Cancellation of GST Retrospectively Affected ITC Availment of Taxpayer’s Customers: Delhi HC suspends Retrospective Effect of Order
The Delhi High Court suspended the retrospective effect of the order cancelling Goods and Service Tax (GST) registration, which affected the income tax credit (ITC) availment of taxpayer’s customers. MS Sumit Enterprises applied for cancellation of registration due to business closure during the COVID period. The application was rejected, and a show cause notice was issued for failure to file a return. The registration was eventually cancelled with retrospective effect. The court held that the cancellation should not have been passed retrospectively and modified the order to take effect from 02.09.2021.
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