This judgment sets a crucial precedent, ensuring that businesses across India are not unfairly restricted from obtaining GST registration in different states.
The Andhra Pradesh High Court has ruled that authorities cannot refuse GST registration solely because the applicant belongs to another state. This decision reinforces the fundamental right to conduct business across India, as protected under Article 19 of the Constitution.
Court Ruling on GST Registration
A Division Bench comprising Justices R Raghunandan Rao and Harinath N. held that the rejection of GST registration on such grounds is legally untenable. They emphasized that the Andhra Pradesh Goods and Services Tax (APGST) Act does not impose any restrictions on individuals or businesses from other states seeking registration within Andhra Pradesh.
Also Read: Madras High Court: Opportunity of Final Hearing under GST Granted on Payment of 10% Disputed Tax
Case Background
In the case of Tirumala Balaji Marbles And Granites v. The Assistant Commissioner St and Others (WRIT PETITION NO: 1200/2025), the petitioner applied for GST registration for its business premises located in Rajamahendravaram. However, the Assistant Commissioner (1st respondent) rejected the application, citing that neither the petitioner nor its authorized representative was a resident of Andhra Pradesh.
Arguments by the Department
The department argued that denying registration was necessary to prevent potential tax evasion, as no responsible individual from Andhra Pradesh was associated with the business.
High Court’s Observations
The High Court disagreed with this rationale, stating that an apprehension of tax evasion—no matter how reasonable—cannot justify the denial of GST registration. The court reaffirmed that every citizen has the constitutional right to establish and conduct business in any part of the country.
Verdict and Implications
The court ruled in favor of the petitioner, declaring the rejection order legally unsustainable. This judgment sets a crucial precedent, ensuring that businesses across India are not unfairly restricted from obtaining GST registration in different states.
This ruling upholds the principle of free trade and commerce within India and reinforces the importance of compliance with statutory provisions rather than discretionary interpretations.
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