GST Registration Cannot Be Denied Saying Applicant Does Not Belong to the State

The Andhra Pradesh High Court ruled that GST registration cannot be denied solely on the grounds that the applicant is from another state.

This case involved a petitioner who had applied for GST registration for its business located in Rajamahendravaram, Andhra Pradesh. However, the Assistant Commissioner had rejected the application, citing the reason that the petitioner did not belong to Andhra Pradesh and that the authorized representative for the petitioner also hailed from outside the state.

The Division Bench of Justice R. Raghunandan Rao and Justice Harinath N. held, “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.”

Advocate Anil Kumar Bezawada appeared for the petitioners.

The department argued that the refusal of registration was justified due to concerns about potential tax evasion, as none of the key individuals involved in the business were from Andhra Pradesh.

The Court, however, disagreed with this reasoning. It added, “Mere apprehension, however well founded, cannot deprive the petitioner of his right to carry on trade and business in the State of Andhra Pradesh. It is also necessary to notice that Article 19 of the Constitution of India, grants every citizen of this Country, the right to set up and do business anywhere in the country. In such circumstances, the order of rejection is clearly without any basis in law.”

In light of this, the Court concluded that the rejection of the registration application lacked a valid legal basis and allowed the petition, thereby directing that the GST registration should be granted.

Cause Title: Tirumala Balaji Marbles And Granites v. The Assistant Commissioner St & Ors., [APHC010022942025]

Source: Verdictum