M/S KHUSALI MOTORS V. THE CHIEF COMMISSIONER

CW/6288/2023

AI Insights

The case involves M/s Khusali Motors, which sought a direction from the court to have their GST registration date amended from 31.05.2018 to 01.07.2017. The petitioner argued that due to incorrect advice, they applied for a new GST registration instead of migrating their existing VAT registration to GST as per the prescribed rules. The respondents contended that the petitioner had not disclosed their provisional registration while applying for a new registration. The court examined the procedural aspects of GST registration and migration from VAT, particularly focusing on the implications of applying under the wrong section and the procedural requirements for migration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 725750 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 20-03-2025
• Assessment Year: misc
• Laws Referred To: Goods and Services Tax Act, 2017, Central Goods And Services Tax Act, 2017, Rajasthan Value Added Tax Act, 2003, Central Sales Tax Act, 1956
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AJAY SHUKLA; RAGHAV SHARMA
• Assessee Lawyers: PANKAJ GHIYA
• Keywords: GST registration; Provisional Registration; Regular Registration; Migration from VAT to GST
• Section: 139; 10(1); 24(2)

Judgement Text

"[2025:RJ-JP:12862-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No.6288/2023 M/s Khusali Motors, Shop No. 226, Transport Nagar, Deeg Road, Bharatpur 321001 (Rajasthan) Through Its Partner Mr. Bahadur Singh S/o Sh. Lalati Singh ----Petitioner Versus 1. The Chief Commissioner, Central Goods And Services Tax, Statue Circle, C Scheme, Jaipur. 2. The Commissioner, State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, Jaipur. 3. The Superintendent, Central Goods And Service Tax Department, Infront Of Ghana Bird Sanctuary, Bharatpur. ----Respondents For Petitioner(s) : Mr. Pankaj Ghiya For Respondent(s) : Mr. Ajay Shukla with Mr. Raghav Sharma HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE MANEESH SHARMA Order 20/03/2025 AVNEESH JHINGAN, J:- 1. This petition is filed seeking direction to the respondents to grant registration w.e.f. 01.07.2017 instead of 31.05.2018. 2. The brief facts are that the petitioner was registered under the Rajasthan Value Added Tax Act, 2003, (for short ‘VAT’) as well as Central Sales Tax Act, 1956. With the implementation of the Goods and Services Tax Act, 2017 (for short ‘GST’), the petitioner under Section 139 of the CGST Act, 2017 was given a certificate of registration on provisional basis. Petitioner gave number of reminders for grant of regular registration and on receiving no [2025:RJ-JP:12862-DB] (2 of 6) [CW-6288/2023] response, filed a fresh application for grant of registration certificate and was granted registration w.e.f 31.05.2018. Hence, the present petition. 3. Learned counsel for the petitioner submits that the petitioner was a registered person under the erstwhile taxation regime and had to migrate from VAT to GST. It was under the wrong advise that instead of filing an application under Rule 24(2) of CGST Rules, 2017, the application for fresh registration was filed. 4. Learned counsel for the respondent submits that petitioner failed to apply u/s 24(2) in Form GST REG-26 registration and rather applied under section 10(1) in Form GST REG-26 for fresh registration. Contention is that petitioner withheld the information of provisional registration already have been granted. 5. It would be relevant to reproduce Section 139 of CGST Act, 2017 and Rule 24 of CGST Rules, 2017. “Migration of existing taxpayers. Section 139. (1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with. (2) The final certificate of registration shall be granted in such form and manner and subject to such conditions as may be prescribed. (3) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24. [2025:RJ-JP:12862-DB] (3 of 6) [CW-6288/2023] 24.Migration of persons registered under the existing law:- (1) (a) Every person, other than a person deducting tax at source or an Input Service Distributor, registered under an existing law and having a Permanent Account Number issued under the provisions of the Income-tax Act, 1961 (Act 43 of 1961) shall enrol on the common portal by validating his e-mail address and mobile number, either directly or through a Facilitation Centre notified by the Commissioner. (b) Upon enrolment under clause (a), the said person shall be granted registration on a provisional basis and a certificate of registration in FORM GST REG-25, incorporating the Goods and Services Tax Identification Number therein, shall be made available to him on the common portal: Provided that a taxable person who has been granted multiple registrations under the existing law on the basis of a single Permanent Account Number shall be granted only one provisional registration under the Act: (2)(a) Every person who has been granted a provisional registration under sub-rule (1) shall submit an application electronically in FORM GST REG–26, duly signed or verified through electronic verification code, along with the information and documents specified in the said application, on the common portal either directly or through a Facilitation Centre notified by the Commissioner. (b) The information asked for in clause (a) shall be furnished within a period of three months or within such further period as may be extended by the Commissioner in this behalf. (c) If the information and the particulars furnished in the application are found, by the proper officer, to be correct and complete, a certificate of registration in FORM GST REG-06 shall be made available to the registered person electronically on the common portal. (3)Where the particulars or information specified in sub-rule (2) have either not been furnished or not found to be correct or complete, the proper officer shall, after serving a notice to show cause in FORM GST REG-27 and after affording the person concerned a reasonable opportunity of [2025:RJ-JP:12862-DB] (4 of 6) [CW-6288/2023] being heard, cancel the provisional registration granted under sub-rule (1) and issue an order in FORM GST REG-28:” 6. The GST came into force on 01.07.2017 and specific provisions were enacted to ensure smooth migration of the persons from the VAT to GST. 7. Under Section 139 of the Act subject to prescribed conditions the provisional registration certificate had to be issued from 01.07.2017 to the person registered under the VAT Act and having a valid Permanent Account Number (for brevity ‘PAN’). As per Section 139 (3) on an application made by the person of not being liable to registration under Rule 22(2) or 24 of CGST Rules, the provisional registration certificate issued is deemed to be cancelled. Rule 24 provides that person registered under the VAT Act shall enroll on common portal validating the email address, mobile number and upon enrollment a provisional registration certificate shall be granted and made available on common portal. Under Sub-Rule (2), within three months or within the period extended by the Commissioner, the person holding provisional registration certificate shall electronically apply in Form GST REG- 26 accompanied by the documents specified. On verification of the particulars of the application by proper officer, a certificate of registration in Form GST REG-6 shall be made available on the common portal. Rule 24(3) provides that in case of non-furnishing of information as required under Rule 24(2) or incomplete or incorrect information having been furnished, the provisional [2025:RJ-JP:12862-DB] (5 of 6) [CW-6288/2023] certificate granted shall be cancelled by the proper officer after providing reasonable opportunity of hearing to the person. 8. In the case in hand, the petitioner was issued provisional registration certificate and till date it has not been cancelled by invoking Rule 24(3) of the CGST Rules. The petitioner on a wrong advice received, kept on sending reminders for issuance of regular registration and instead of filing an application under Rule 24(2) applied for fresh registration under rule 10 of CGST Rules. 9. During the existence of the provisional registration certificate, the new registration certificate was issued with a different GSTIN. 10. The contention of the learned counsel for the respondent that the petitioner had withheld the information of the provisional certificate lacks merit. The procedure of the registration under the GST Act is online and is linked with PAN. Department provided the provisional as well as the regular registration on common portal. Even in case of a default by the petitioner to disclose provisional registration while applying for a new registration certificate, the common PAN number filed would have depicted that the petitioner was already holding a provisional registration certificate. 11. The eligibility of the petitioner for registration under the GST Act is not in dispute. The issue is only with regard to the intervening period of 01.07.2017 to 30.05.2018, which is due to filing an application in a wrong form by the petitioner. 12. It cannot be lost sight of that under Rule 24(2) of the CGST Rules, the Commissioner has power to extend the period beyond three months for filing an application under Rule 24(2) of the Rules. [2025:RJ-JP:12862-DB] (6 of 6) [CW-6288/2023] 13. The aspect as to whether on single PAN number two GSTIN can be issued by department in one State needs to be looked into. 14. In the facts and circumstances of the case, the matter is disposed of with liberty to the petitioner to file an application in Form GST REG-26 accompanied by an application seeking prayer for condoning the delay. 15. In the eventuality of petitioner moving an application within two weeks from today, the same shall be processed in accordance with law, expeditiously. There is no doubt that while dealing with application for condonation of delay, apart from the ground of the wrong advice received by the petitioner, the pendency of the petition before this Court shall also be taken into consideration. (MANEESH SHARMA),J (AVNEESH JHINGAN),J Chandan/63 Reportable: Yes "