Penalty for wrong issuance of invoice is overall or per invoice, Goods and Services Tax - GST

[Abhijeet Mane]

Whether the penalty for wrong issuance of invoice is 10,000 per invoice or is it overall 10,000 irrespective of number of invoice.

Posts / Replies

[KASTURI SETHI]

It is per offence.

[Padmanathan Kollengode]

Abhijeet sir,

pls elaborate what is the actual mistake in invoice.

[Abhijeet Mane]

Wrong HSN, however no impact on rate

[KASTURI SETHI]

Mere wrong mention of HSN, especially, in the event of no revenue loss has been caused, is exonerable procedural offence. Although as per GST Rules, penalty is imposable, yet it being a minor offence is ignorable. Practically, the department does not impose penalty in such cases.

[Amit Agrawal]

No penalty, in given facts, due to Section 126 (1) of the CGST Act, 2017.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Padmanathan Kollengode]

Agreed with the views of the experts. This is not "wrong issuance of invoice" but only a "mistake in the invoice issued". Hence, general penalty can be levied which can be justified under Section 126.

It is assumed that mistake in HSN was clerical error and not misclassification and also that the correct rate of tax is collected and paid. The facts of the case has to be seen holisticaly.