Fresh GST Registration Application Can’t Be Rejected Without Reasoned Order: Patna High Court

The Patna High Court has ruled that a fresh GST registration application cannot be rejected without providing a reasoned and justified order.

M/s Maharaj Ji Enterprises’ GST registration was cancelled in February 2023 for non-filing of returns. While reapplying, the petitioner cited technical issues on the portal. The application was rejected without reasons on August 17, 2024, leading the firm to approach the Patna High Court under Article 226.

The bench of Justice Rajeev Ranjan Prasad and Justice Ashok Kumar Pandey stated, “On a bare reading of the circular, it is crystal clear that a fresh application for registration is not barred but what is required to be done by the Proper Officer is to record a finding that the application for revocation of cancellation of registration has not been filed and the conditions specified in clauses (b) and (c) of sub-section (2) of Section 29 of the Central Goods and Services Tax Act (in short ‘CGST Act’) are still continuing.”

The Court set aside the rejection of the GST registration application and directed the Deputy Commissioner of State Tax, Madhubani, to reconsider the application. If statutory requirements need to be fulfilled and the petitioner is willing to comply, he should be given an opportunity to do so. The application must then be decided as per law at the earliest.

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