GST registration is a mandatory requirement for any business in India that is dealing with the supply of goods or services. It is aimed at streamlining the tax system and ensuring compliance with the law. However, in some cases, businesses may lose their GST registration due to various reasons such as non-filing of returns or non-payment of tax. The question that arises in such cases is whether the non-restoration of GST registration can be brought within the ambit of Right to Livelihood under Article 21 of the Constitution of India.
Article 21 of the Constitution of India guarantees the right to life and personal liberty to every citizen. This includes the right to livelihood, which has been recognized as an integral part of the right to life under Article 21. The Supreme Court of India has held that the right to livelihood includes the right to work, the right to choose one's occupation, and the right to earn a livelihood.
Loss of GST registration can have a significant impact on the business operations of a company. A business cannot collect GST from its customers if it does not have a valid GST registration. This means that the business will not be able to claim input tax credit on its purchases, which will increase its cost of production. Additionally, businesses that are required to have a GST registration but do not have one can be penalized by the tax authorities.
The procedure for restoration of GST registration is laid down in Section 30 of the Central Goods and Services Tax Act, 2017. The section provides that a person whose registration has been cancelled or surrendered can apply for restoration of registration within 30 days from the date of cancellation or surrender. If the application is made within the prescribed time, the registration can be restored, subject to certain conditions.
The question that arises is whether the non-restoration of GST registration can be challenged under Article 21 of the Constitution of India. The answer to this question depends on whether the right to livelihood can be said to be violated by the non-restoration of GST registration.
In the case of Olga Tellis v. Bombay Municipal Corporation, the Supreme Court of India held that the right to livelihood is not just the right to an occupation or employment, but also includes the right to the basic necessities of life such as food, shelter, and clothing. The Court held that the right to livelihood is a fundamental right and that the State has a duty to ensure that this right is not violated.
Applying this principle to the case of non-restoration of GST registration, it can be argued that the non-restoration of registration can have a serious impact on the livelihood of a business owner. If a business is not able to restore its GST registration, it may not be able to continue its operations, which can result in the loss of livelihood for the business owner and its employees. This can be particularly detrimental for small and medium-sized enterprises, which may not have the financial resources to sustain themselves without a valid GST registration.
In conclusion, it can be argued that the non-restoration of GST registration can be brought within the ambit of Right to Livelihood under Article 21 of the Constitution of India. Loss of GST registration can have a significant impact on the business operations of a company, and in some cases, may result in the loss of livelihood for the business owner and its employees. Therefore, it is important for the government to ensure that the procedure for restoration of GST registration is simple and streamlined, so that businesses can continue their operations without any hindrance.
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