Rejection of Cancellation Application and Cancellation later ab Initio: Delhi HC limits Retrospective Effect of GST Registration Cancellation

The Delhi High Court limited the retrospective effect of a GST registration cancellation, ruling that the cancellation should not apply to periods before the decision was made unless explicitly stated. The court’s decision was based on the principle that retrospective actions could unfairly penalize taxpayers. This ruling provides relief to businesses facing retroactive cancellations and highlights the need for clear guidelines on the applicability of such decisions.