Wednesday, March 6, 2024

No GST Penalties for Technical Glitches in e-Way Bill Generation: Allahabad HC Ruling

In a landmark decision on January 29, 2024, the Allahabad High Court provided significant relief to businesses grappling with the Goods and Services Tax (GST) compliance mechanism. The court ruled in the case of Precision Tools India vs. State of Uttar Pradesh that businesses will not be penalized under Section 129(3) of the Central Goods and Services Tax (CGST) Act for failing to complete Part B of the e-Way Bill due to technical difficulties, as long as there is no intention to evade tax.

This judgment underscores the understanding that technical issues, often beyond the control of taxpayers, should not lead to punitive measures, especially when there is clear evidence of compliance intention. Drawing from the precedent set by the M/S Roli Enterprises case, the Allahabad High Court's decision marks a pivotal moment in GST jurisprudence, offering a reprieve to businesses facing inadvertent technical hurdles in adhering to GST mandates