Nidhi | Apr 6, 2026 |
GST Registration Cannot be Cancelled Due to Filing of Nil Return: Uttarakhand HC
The Uttarakhand High Court has ruled that the GST registrations cannot be cancelled merely because a taxpayer filed NIL returns.
The department had cancelled the GST registration of the petitioner, Surya Build Creations, claiming that it was filing Nil returns for the last two years.
This action was challenged by the company before the Uttarakhand High Court, where it was argued that Section 29 of the GST Act does not specifically say that Nil returns can be a ground for cancellation.
The petitioner argued that the power to cancel registration can be exercised only for the situations listed under Sub Section (2) of Section 29. The company relied on a previous ruling of Andhra Pradesh to support its view.
The High Court agreed with the contentions raised by the petitioner. It upheld the ruling of Andhra Pradesh, saying that filing a Nil return is not a ground contemplated under Section 29(2) of the GST Act.
As a result, the cancellation order and the relevant show cause notice were quashed.
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