ABC Pvt Ltd, received a show cause notice from the GST department under Section 29(2)(a) for cancellation of GST registration. The reason given was that no business is being done from our principal place of business.
We are a SaaS (Software as a Service) company, and all our employees work from home. The registered address is a virtual office taken specifically for GST registration and correspondence. We submitted the following as part of our reply:
Agreement with the virtual office/co-working space provider
Sales and purchase invoices using that address
However, the GST officer visited the location and found no name board or signs of physical activity. He claims that this means the business is not operational from the registered address.
Is this a valid reason for cancellation of GST registration? Are there any case laws or rulings supporting the use of virtual offices for GST purposes, especially for IT or SaaS
businesses?
CAclubindia
