No Penalty for Non – Filing of GST return when GST Registration was wrongly done – Judgment by Allahabad High Court

1.0 Introduction

It may be the first judgment of Allahabad High Court on the subject matter of GST. Since, the implementation of GST from 1^st July, 2017 many people were facing the problems in getting the GST registration. Some of the problem was due to website and while some are created by our own.

For all those people who has committed mistake while filing the GST registration, this judgment may bring relief from the penalty of Non-filing the GST return. This is a short judgment but very effective. Let us discuss the facts and the potential effect of the judgment.

2.0 The brief facts about GST Registration

An applicant (a partnership firm) wrongly applied the GST registration as sole proprietor. So, after the mistake, he went to the Joint Commissioner (IT) to get the possible solution.

Since after the visit, the Joint Commissioner said that new GST ID and password to the petitioner as a partnership firm would be issued. However, since the GST registration in the name of sole proprietor has already been issued the question was whether any penal action can be initiated against the assessee for non filing of the GST return?

3.0 The Decision by the Allahabad High Court

The court has decided that no penal action would be initiated against the petitioner on non filing of the GST return and deposits the tax thereon if he deposits the tax and files the return within two weeks of the issuance of the correct registration certificate.

4.0 The possible impact of this judgment

The possible impact of the judgment can bring cheers to those who could not able to file the return due to some errors or due to non issuance of login ID and password because High Court has interpretated the law liberally and provided the complete benefit of insufficient infrastructure to the taxpayers.

Hence, the timing of this judgment is very good and every related taxpayer should take the cognizance from.

5.0 Conclusion

In case of any issue or problem, kindly email the same to info@hubco.in.

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