Best Practices of Physical Verification for GST Department

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"PHYSICAL VERIFICATION" GST Department cancels registration on the basis of Physical Verification. But what are the best practices of physical verification and whether they are followed or not? Please save/bookmark the post. Compiled by: Raja Abhishek: Candidate for NIRC'2024

1. Punjab and Haryana High Court 1.1 Gupta Enterprises (2024) 15 CENTAX 269 :: (2024) 1 TMI 954 :: 2024-TIOL-112-HC There is no justification to cancel GST registration if the GST name board was taken off due to renovation.

2. Delhi High Court 2.1 BIMAL KOTHARI (2022) 11 TMI 428 :: 2022-VIL-754 :: (2023) 68 GSTL 358 Cancellation of registration based on physical verification carried out at place of business without issuing notice mandating taxpayer's presence at time of verification and

without uploading verification report on common portal was not sustainable. 2.2 CURIL TRADEX PVT LTD 2022-VIL-656 :: (2022) 9 TMI 259 In terms of Rule 25, if after the grant of registration, the proper officer is satisfied that physical verification of the place of business

of the concerned person is required, the proper officer may get such verification of the business place carried out, but in the presence of the said person.

3. Calcutta High Court 3.1 Rohit Verma/Varma 2022-VIL-399 :: 2022-TIOL-848-HC :: (2023) 70 GSTL 116 Authority while cancelling registration could not solely rely upon statement made by receptionist of office building who could not recognise appellant's photograph.

4. Madras High Court 4.1 SREENIDHI ALLOY METAL SUPPLIERS (2024) 83 GSTL 359 Where assessee had already informed that lease of rented premises was surrendered and that a fresh lease for an alternative premises was taken,

cancellation of registration on basis of consequent physical verification of earlier premises was to be set aside.

5. Jammu & Kashmir and Ladhak High Court 5.1 TC Tours Ltd. (2024) 6 TMI 832 Petitioner's GST reg. cancelled due to non-functional premises. Failure to file reply to the notice within the time specified therein. Violation of Rule 25 found, reg. restored retrospectively. ARR