Madras High Court calls GST Registration Cancellation ‘Capital Punishment’ for Traders, orders easier rules and SMS alerts in regional languages

The Madras High Court criticized the harshness of cancelling GST registrations, calling it akin to "capital punishment" for small traders. The court recommended adopting a more lenient approach, such as issuing warnings and alerts before cancellations. It also suggested implementing a system where traders receive alerts via SMS in regional languages, ensuring better communication. This judgment advocates for easier compliance procedures to ensure that smaller businesses, especially in rural areas, aren't disproportionately affected by stringent regulations. This decision could potentially lead to reforms in GST compliance processes.