[Covid 19] Operating Business Under WFH Model Cant Be A Reason For Taking Away GST Registration: Calcutta HC

Many small and medium businesses had adopted a work from home model during the Covid pandemic due to a multitude of plausible reasons. For some, it was the unavailability of staff, for others it could have been logistics and cost cutting measures amid the impending lockdown.

In such a case, what happens to the registration of a company under GST laws if it was not operating from the registered premises at the time of investigation amid the Covid restrictions.

A similar matter was placed before the Calcutta High Court on Monday. The appellant International Value Retail had challenged a show cause notice and adjudication order issued by the GST authorities against it. In the said adjudication order, the registration of the company was cancelled for carrying the business from home instead of registered office premises.

Following, the principles of natural justice, the court ordered that the authorities must pass a reasoned order within 4 weeks after giving the company a chance to place all the relevant materials before the authorities.

Well, considering the fact that businesses have been running their operations under the shadow of Covid since March 2020, releasing a standard circular outlining the circumstances that can take away the GST registration in the present scenario. A work from home model of business in today's times will definitely merit a case for exemption.