AP HC: GST Registration Can’t Be Rejected If the Assessee Has One from Another State

It was mentioned by the Andhra Pradesh High Court that GST registration could not be denied just because the taxpayer belongs to another state.

“Though the apprehension of the respondents may not be misplaced, it would not mean that registration can be refused on a ground, which is not available under the Statute or the Rules. There do not appear to be any restriction for persons outside the State to come into the State of Andhra Pradesh and seek registration under the APGST Act,” mentioned the Division Bench of Justices R Raghunandan Rao and Harinath N.

The applicant/taxpayer in the same case asked for the registration under A.P. Goods and Services Tax Act, for its place of business located in Rajamahendravaram which was rejected by the Assistant Commissioner/1st respondent by an order.

The basis provided for the same rejection was that the taxpayer does not belong to Andhra Pradesh and the authorized representative, put forward by the taxpayer, does not belong to the State of Andhra Pradesh.

The order passed by the Assistant Commissioner before the Andhra Pradesh High Court was contested by the taxpayer.

It was furnished by the department that the registration was denied based on the thing that there shall be any amount of scope for tax evasion since there is no responsible person that belongs to the State of Andhra Pradesh.

It was said by the bench that mere apprehension was well-founded and could not restrain the taxpayer from his right to carry on trade and business in the state of Andhra Pradesh. Article 19 of the Constitution of India, grants every person in this country, the right to set up and do business anywhere in the country. In the same cases, the rejection order does have no basis in law.

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The bench in the aforesaid view has permitted the petition.