Goods & Services Tax (GST) in IndiaGST NextAUDIT CAN BE CONDUCTED BY THE DEPARTMENT EVEN AFTER CANCELLATION OF GST REGISTRATION OF THE TAXPAYER

The Hon’ble Rajasthan High Court in Ashoka Fabricast Pvt. Ltd. v. Union of India [DB Civil Writ Petition No. 2859 of 2024 decided on 01.05.2024] held that the Audit Notice and Assessment Order would be considered to be valid for the period when the taxpayer was registered, even if issued after the cancellation of registration of the taxpayer.

It was held that the Section 29(3) of the CGST Act, 2017 does not affect the liability for the period prior to cancellation. Therefore, when the taxpayer has fraudulently availed ITC and got the registration cancelled to evade the payment of taxes, it does not exempt the proceedings under Section 74 of the CGST Act, 2017.

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