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WHETHER PAST ITC CAN BE CLAIMED NOW UPON REVOCATION OF CANCELLED REGISTRATION?
This question is answered positively by Hon’ble Rajasthan High Court in the case of M/s R.K. Jewelers vs. Union of India (D.B. Civil Writ Petition No. 4236/2023).
Vide Notification No.03/2023-Central Tax, Government has provided one time amnesty scheme for revocation of cancelled registration to persons whose registration has been cancelled on or before December 31, 2022. Even taxpayers whose appeal is pending before the appellate authority or whose appeal has been rejected can also avail the benefit of this one-time opportunity. Revocation can be applied on or before 30th June 2023, after furnishing returns due upto the effective date of cancellation of registration and after payment of any amount due in terms of such returns as tax, interest, penalty & late fee.
Meanwhile, in the aforecited case of R.K. Jewelers, Court held 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 lodge its claim for AVAILMENT OF ITC in respect of the period FROM THE CANCELLATION OF THE REGISTRATION TILL THE REGISTRATION IS RESTORED.
This is a welcoming decision and its hightime that businesses should take right advantage of such opportunities before end of June23. Even in cases where there is no need for revocation to continue the registration (for reasons including business discontinuance), if there are unpaid liabilities & unavailed ITC relating to the past period prior to suo moto cancellation of registration, it is advisable to obtain revocation of such cancelled registration, avail the ITC, discharge the unpaid liabilities with interest and then surrender/cancel the registration appropriately. This would help such taxpayers to settle the non-compliances relating to the past as a onetime measure.