Non-generation of E-Invoice: No Penalty if T/O was wrongly disclosed above 5Cr and Rectified in GSTR-9 [Read HC Order]

The petitioner states that cotton bales transported by him were intercepted on 12.05.2023 on the basis that he had not generated e-invoices as per Rule 48(4) of the applicable GST rules. Thereafter, it is stated that the goods were detained. The petitioner asserts that e-invoices are not mandatory unless the turnover is more than Rs.5 crore.

The petitioner had wrongly indicated the turnover in the returns filed for 2018-19 and that this was subsequently rectified by filing the annual return in Form GSTR-9.

High Court Order:

4. The admitted position is that the goods were released after the petitioner remitted the amount specified in the detention order. The petitioner asserts that the impugned order should not have been issued because his turnover is less than Rs.5 crore. In these facts and circumstances, the impugned order calls for interference. Consequently, the impugned order is quashed and the petitioner is permitted to seek refund of the amount paid towards penalty. If such application is filed, the respondents are directed to consider and dispose of the same expeditiously.