Penalty for wrong issuance of invoice is overall or per invoice

[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.

[KASTURI SETHI]

It is per offence.

[Padmanathan KV]

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 KV]

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.

AI Summary

No Penalty for Wrong HSN Code on Invoices if Correct Tax Rate Applied: Clarification Under Section 126(1) CGST Act 2017. A discussion on the penalty for wrong issuance of invoices under GST law reveals differing opinions. One participant clarifies that penalties are imposed per offense. Another asks for details on the mistake, which is identified as a wrong HSN code without affecting the tax rate. It is noted that such minor procedural errors, especially when no revenue loss occurs, are often overlooked by authorities. The consensus is that no penalty applies under Section 126(1) of the CGST Act, 2017, as the error is clerical rather than misclassification, assuming the correct tax rate is applied and paid.