GSTAT Lucknow set aside a ₹63.72 lakh penalty under Section 129 GST for delayed e-invoice generation, holding that possession of invoice, e-way bill, and transport documents negated any intent to evade. The ruling emphasizes proportionality in penalty imposition.
GSTAT Lucknow Deletes ₹63.72 Lakh Penalty for Delayed E-Invoice
The Gujarat State GST Appellate Tribunal (GSTAT) in Lucknow has deleted a penalty of ₹63.72 lakh imposed under Section 129 of the CGST Act for failure to generate an e-invoice within the prescribed time. The taxpayer had issued a tax invoice and generated an e-way bill, but the Invoice Reference Number (IRN) was created two days post-sale.
The Tribunal held that
the delay in IRN generation, while a procedural lapse, did not amount to tax evasion where physical invoices, e-way bills, and transport documents were in order.It relied on Rule 48(5) of the CGST Rules and observed that the transaction was genuine and reported in GST returns, negating any willful concealment. Consequently, confiscation under Section 129 was found disproportionate.
This decision will guide practitioners in defending against disproportionate penalties where e-invoicing errors are technical rather than intentional. It underscores the need to demonstrate documentary compliance and lack of tax loss when challenging enforcement actions under Sections 129 and 130.
Citations
- Section 129, CGST Act
- Rule 48(5), CGST Rules
