Filing NIL GST Returns Is Not a Valid Ground for Cancellation of Registration | Biz Flow Kit
The Uttarakhand High Court ruled that GST registrations could not be cancelled merely because a taxpayer submitted NIL GST returns.
The GST registration of the applicant, Surya Build Creations, was cancelled by the department, asserting that it had submitted GST NIL returns for the last two years.
The company contested the action before the Uttarakhand High Court, where it was claimed that Section 29 of the GST Act does not state that Nil returns can be a reason for cancellation.
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The applicant mentioned that the authority to cancel the registration can be exercised only for the cases listed under Sub Section (2) of Section 29. The company put reliance on an earlier ruling of Andhra Pradesh to support its view.
The HC agreed with the claims of the applicant. It carried the ruling of Andhra Pradesh, mentioning that filing a Nil return is not a reason mentioned u/s 29(2) of the GST Act.
Consequently, the cancellation order and the pertinent SCN were quashed.
| Case Title | Surya Build Creations vs. Commissioner, SGST |
| Citation | Writ Petition (M/B) No. 179 of 2026 |
| Counsel For Appellant | Mr. Ashish Agarwal |
| Counsel For Respondent | Ms. Puja Banga |
| Uttarakhand High Court | Read Order |
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