No GST provision renders assessee ineligible from applying for GST registration afresh after cancellation

The Delhi High Court has ruled that there is no provision within the Central Goods and Services Tax Act that prevents an assessee from applying for a fresh GST registration after their previous one has been cancelled. While dismissing a petition challenging a cancellation, the court clarified that a relevant circular is binding. Therefore, individuals whose GST registration was cancelled are permitted to seek new registration if they meet the eligibility criteria.

The Hon'ble Delhi High Court in the case of Kirpal Singh v. Superintendent Range 118 Central Goods and Service Tax [Writ Petition(C) No. 17799 of 2024 dated January 13, 2025], dismissed the writ petition challenging the cancellation of GST registration, held that no provision under the Central Goods and Services Tax Act, 2017 ("the CGST Act") prohibits the Assessee from applying for fresh registration and the Circular No. 95/14/2019-GST dated March 28, 2019 ("the Circular") was binding on the Assessee. Hence, granted liberty to the Assessee to seek new registration under the CGST Act.

Facts:

Mr. Kirpal Singh's ("the Petitioner")GST registration was cancelled vide Order dated April 26, 2021 ("the Impugned Order").

Hence, aggrieved by the Impugned Order the Petitioner filed the present writ petition.

Issue:

Whether an assessee whose GST registration has been cancelled is barred from applying for fresh registration under the CGST Act?

Held:

The Hon'ble Delhi High Court in WP(C) No. 17799 of 2024 held as under:

• Held that, no provision of the CGST Act renders the Petitioner ineligible from applying for fresh a GST registration after cancellation. The Circular was binding on the Petitioner. Hence, the Petitioner is free to apply for fresh registration instead of challenging the cancellation and the writ petition was dismissed.

Our Comments:

The Circular clarifies that taxpayers whose registration has been cancelled can seek fresh registration if they meet the eligibility criteria.

In a pari materia case of Salwa Foods v. Commissioner of Central Goods and Services Tax [Writ Petition(C) No. 14187 of 2024 dated December 16, 2024] the Hon'ble High Court of Delhi held that taking note of belated challenge which stood mounted by way of instant petition and also considering fact that the CGST Act does not disentitle or render assessee ineligible to apply for registration afresh, assessee was to be permitted to approach competent authority for grant of registration afresh.

OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED