Held by the Hon’ble High Court of Andhra Pradesh
In the matter of Tirumala Balaji Marbles And Granites vs. the Assistant
Commissioner St and Others (W.P.No.1200/2025)
The Petitioner applied for GST registration in the state of Andhra Pradesh. However, the proper officer rejected the application because the applicant and the authorized representative do not belong to the state of AP. The respondent contended that there would be any amount of scope for tax evasion as none of the responsible persons are from the state of AP.
Hon’ble High Court held that such GST registration can’t be refused on a ground that is not available in the GST law itself. AP GST Law does not provide any restriction for persons outside the State to obtain GST registration in the AP state. Mere apprehension cannot deprive the petitioner of his right to carry on trade and business in the State of Andhra Pradesh.
Further, 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. Therefore, the order of rejection of GST registration is clearly without any basis in law and is liable to be set aside. The respondent is directed to register the petitioner under AP GST.
1. Brief Facts of the case:
- The Petitioner applied for GST Registration in the state of Andhra Pradesh for the place of business situated in Rajamahendravaram.
- However, the proper officer rejected the GST registration application on the grounds that the applicant does not belong to Andhra Pradesh and also the authorized representative, put forward by the petitioner, does not belong to the State of Andhra Pradesh.
- Aggrieved by such an order, the petitioner approached the Hon’ble High Court challenging the order to reject the GST registration application.
2. Contention of the Respondent
The respondent contended that:
- The registration was refused on the ground that there would be any amount of scope for tax evasion, as none of the responsible persons are from the State of Andhra Pradesh.
3. Analysis by Hon’ble High Court:
The Hon’ble High Court held that:
- The apprehension of the respondents may not be misplaced, however, GST registration can’t be refused on a ground that is not available under the statute or the Rules.
- AP GST Law does not provide any restriction for persons outside the State to obtain GST registration in the AP state.
- Mere apprehension cannot deprive the petitioner of his right to carry on trade and business in the State of Andhra Pradesh.
- Further, 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.
- Therefore, the order of rejection of GST registration is clearly without any basis in law.
- Accordingly, the impugned order is set aside and the respondents are directed to register the petitioner under the APGST Act.
- However, the respondent may take such steps to monitor the returns of the petitioner and to verify the business activities of the petitioner, to ensure that there will be no tax evasion.
4. Order
The Hon’ble AP High Court held the order of rejection of GST registration is clearly without any basis and the same is liable to be set aside and the respondents are directed to register the petitioner under the APGST Act.
Conclusion:
Most states require the Applicant to appoint a local authorised representative to obtain the GST registration; such practice prevents the business from making its business presence across India. Such practice defeats the “one Nation, one Tax” principle of the GST. Judgment by the Hon’ble AP High Court is a fair move and it will allow the taxpayers to eradicate the key business trouble of obtaining GST registration in other states.
