New procedures in GST system may be challenged in courts, say experts

Experts said under the pre-GST state-level value-added regime, cancellation of registration rarely happened

Experts say the new procedures in the goods and services tax (GST) system that enable officials to attach properties, including bank accounts, and cancel registration for non-filers of returns were harsh and might be challenged in courts.

“It is quite possible that these may be challenged in courts,” said Abhishek Rastogi, partner at Khaitan & Co, who is arguing many GST-related cases in courts.

He said attachment of bank accounts and cancellation of registration for non-compliance were harsh for the industry grappling with teething issues.

The GST commissioner may resort to provisional attachment under Section 83 of the Central GST Act, according to