No GST Penalty For Minor Technical Mistake: High Court:

The Allahabad High Court ruled that GST penalties cannot be imposed for minor technical errors if there is no intent to evade tax.

Court Says No GST Penalty for Minor Mistakes Without Tax Evasion

Saloni Kumari

May 30, 2025

Last update on May 30, 2025

No GST Penalty For Minor Technical Mistake: High Court The Allahabad High Court has announced penalty enforced under Section 129 (3) of the GST Act as illegal. The court has clarified that if tax is not evaded intentionally, then a penalty cannot be imposed just for minor technical errors. The order has been passed by the Chief Justice Arun Bhasali and Justice Kshitij Shailendra division bench, in response to a petition filed by M/s Auto Industries. Assistant Commissioner (Mobile Squad-5) of Gautam Buddha Nagar filed the petition for not filing the e-way bill Part B. In response to the case, the firm went to court. The petitioner's lawyer, Pranjal Shukla, said the goods were being moved legally, and it was just a technical mistake. But the government lawyer called it a serious issue. The court noted that there was no mention of tax evasion in the case, and cancelled the penalty by referring to a previous Supreme Court decision.

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Saloni Kumari

Content Writer

Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].