Retrospective GST Cancellation In Absence Of Specific Reasons Will Take Effect From Date Of Issuance Of SCN: Delhi HC

The Delhi High Court ruled that the retrospective cancellation of GST registration should take effect from the date of issuance of the show cause notice (SCN) rather than an earlier date. The court found that the absence of specific reasons for retrospective cancellation violated the principles of natural justice. The petitioner had challenged the cancellation, arguing that it was arbitrary and lacked proper justification. The court emphasized the need for transparency and fairness in administrative actions, particularly those affecting taxpayers’ rights. This decision ensures that taxpayers are given adequate notice and opportunity to respond before such cancellations take effect.