NCLT Ahmedabad Directs Restoration Of Gensol EV Lease's GST Registration During CIRP

The Ahmedabad bench of the National Company Law Tribunal has directed the GST authorities to restore the GST registration of Gensol EV Lease Limited during its Corporate Insolvency Resolution Process (CIRP).

The bench held that the cancellation shall not operate against the company during CIRP, observing that the GST registration “has a direct bearing upon the statutory compliances” and may materially affect the Resolution Professional's ability to manage the company's affairs.

Judicial Member Shammi Khan and Technical Member Sanjeev Sharma clarified that commencement of CIRP does not automatically invalidate statutory proceedings under another law. The effect of the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) depends on the nature of the proceeding and the statutory action involved.

Gensol EV Lease was admitted into CIRP on 13 June 2025 on a Section 7 IBC application filed by Indian Renewable Energy Development Agency Limited. Keshav Khaneja was appointed IRP and subsequently RP on August 25, 2025.

During CIRP, the GST department issued a show cause notice on November 18, 2025, proposing cancellation of registration. The notice referred to Section 39 returns, GSTR-1 details and GSTIN suspension. The registration was cancelled retrospectively. The RP then approached the tribunal, relying on the March 23, 2020 and May 6, 2020 CBIC circulars

The RP submitted that the relevant GST returns had been filed before cancellation of the registration.

The GST department contended that CIRP did not automatically invalidate proceedings under GST law. It also argued that the RP had not sought revocation of the cancellation or taken steps for fresh registration under the applicable special procedure.

The tribunal held that the dispute fell within its jurisdiction under Section 60(5)(c) because the GST registration had a direct nexus with the conduct of CIRP. It clarified that it was not exercising appellate jurisdiction under GST law or deciding the merits, quantum or enforceability of any GST demand.

Accordingly, the tribunal directed that the cancellation shall not operate against Gensol EV Lease during CIRP. It further directed the GST authorities to take consequential steps for restoration in accordance with the CGST Act, rules, notifications and applicable circulars.

The authorities were also directed to consider and process the request to update the company's operational or principal place of business at the new Gurugram premises.

The exercise was to be completed expeditiously, preferably within two weeks of receiving a copy of the order, subject to verification, applicable procedural requirements, and the RP furnishing documents or information lawfully required by the authorities.

The order does not prevent the GST authorities from carrying out assessment or adjudication of statutory liabilities. They may also submit lawful claims for dues arising before the insolvency commencement date before the RP in accordance with the IBC.

The application was accordingly allowed and disposed of without an order as to costs. The tribunal also directed its Registry to send a copy of the order to the Chairman, Central Board of Indirect Taxes and Customs, for necessary action, including guidance to field officers if required.