Retrospective GST Cancellation Cannot Be Passed Unless Specifically Mentioned in SCN With Reasons: Delhi HC

The Delhi High Court ruled that a retrospective cancellation of GST registration is invalid unless the show cause notice (SCN) explicitly proposes retrospective cancellation and gives reasons for it. In EWorld Business Solutions Pvt Ltd, the petitioner’s registration was cancelled by order dated 18 March 2025, with retrospective effect from 1 July 2017. The SCN (31 December 2024) asked about non-filing of returns; the petitioner then filed all returns and paid dues. The cancellation order added a new ground—the premises not being found operational— which was not in the SCN. Held: since the SCN did not include prospective retrospective cancellation or non-existent premises, the cancellation was unsustainable. The Court set aside the order cancelling registration from 1 July 2017 and held cancellation valid only from the SCN date, 31 December 2024. The earlier alert notice (27 May 2025) was also quashed. The department may issue fresh proceedings if other violations are found.