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Allahabad HC: Arbitrary GST Registration Cancellations Without Reasons Amount to ‘Economic Death’ for Businesses

  • The Allahabad High Court criticized GST authorities for frequently canceling GST registrations without providing reasons, calling it “economic death” for businesses.
  • The court set aside a specific cancellation order against M/S Anil Art and Craft, citing lack of proper reasoning and fair procedure.
  • The judgment emphasized that administrative orders must include clear reasons and that denying this is against GST law and basic legal principles.
  • The court ordered the commercial tax commissioner to issue instructions to GST officers, including penal consequences for passing non-speaking orders or denying fair opportunity.
  • The decision aims to prevent similar procedural lapses and protect businesses from disproportionate hardship.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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