Wednesday, March 20, 2024

No GST Penalty for Simple Address Mistakes: A Key Judgment

Case Reference: Ridhi Sidhi Granite and Tiles v. State of U.P., High Court of Allahabad, Writ Tax No. 298 of 2024, Dated March 1, 2024

In a noteworthy decision by the High Court of Allahabad, businesses received a sigh of relief regarding GST compliance. The case, Ridhi Sidhi Granite and Tiles v. State of U.P., addressed a scenario where a company faced a GST penalty due to an incorrect address on an e-way bill, despite no intent to evade GST and all other details being correct.

The court ruled that such minor errors should not attract penalties, emphasizing that penalties under GST law should be for deliberate tax evasion, not for inadvertent mistakes. This judgment ensures fairness in the application of GST penalties and underscores the importance of intent behind the errors.

By setting aside the penalty and ordering a refund, the High Court has highlighted a sensible approach to GST enforcement, ensuring that businesses are not unduly punished for simple mistakes.