GST – Notice for audit valid even after de-registration
The petitioner was engaged in rental and leasing services of commercial properties and other ancillary activities.
On 2.3.2019, the petitioner was given registration certificate under CGST
On 27.3.2023, the petitioner applied for CGST registration.
On 1.4.2023, the GST registration was cancelled.
On 6.11.2023, the notice for audit of April 2021 to 2022 was issued. This was replied that after cancellation of registration, audit cannot be done.
On 21.11.2023, the requisition was issued for various documents.
On 21.8.2024, another notice for audit was issued.
HELD that an audit contemplated by Section 65 is not a concurrent audit but an audit after the event. The phrase “at such frequency” in Section 65(1) does not mean that the audit should be conducted concurrently or regularly.
The Scheme of Section 65 with Sections 73 and 74 of the GST Act show that Section is applicable even to a de-registered person. Tax or other dues can be determined before or after the cancellation of GST registration.
As per the preliminary findings report dated 11.10.2024, it was found that the petitioner had claimed an excess Input Tax Credit of Rs.3,60,44,378/- inadmissible under GST Act.
Judgment dated 19.11.2024 of the Division Bench of the Bombay High Court (OS) in Writ Petition (L) No.34267 of 2024 of LJ – Victoria Properties Private Limited Vs. Union of India and others
