ITC can be claimed for the period from the date of cancellation of registration till registration is restored: Rajasthan High Court

In the case of R K Jewellers vs. Union of India, The Hon’ble Rajasthan High Court held that the Input Tax Credit (ITC) can be claimed for the period from the date of cancellation of registration till registration is restored.

The writ petitions were filed by the Ramesh Kumar Soni Proprietor of M/s R K Jewellers (“The petitioner”) being aggrieved by the order dated 02.02.2023 issued by the GST State Commissioner for cancellation of registration on the ground of non-filing of returns. The appeal was also rejected by the Appellate Authority against the said order.

During the pendency of writ petition, the Hon’ble Rajasthan High court observed that a notification dated March 31, 2023 had been issued by the competent authority and as per the said notification, on the conditions being fulfilled, the cancellation of registration effected on the ground of non-filing of GST return, could be revoked.

The court is of the view that petitioner is covered by Notification issued on March 31, 2023 and the petitioner can move an application before the authority to restore the GST registration subject to fulfilment of conditions mentioned.

It is further clarified by the Hon’ble High Court that when the competent authority considers the issue of revocation of cancellation of petitioner firm GST registration under the notification dated 31.03.2023, the petitioner-firm, shall be entitled to claim for availment of Input Tax Credit in respect of the period from the cancellation of the registration till the registration is restored.