Export Incentive Cannot Be Denied for Technical Breach of GST S.129: Madras HC Orders ₹2.4L Excess Penalty to be Adjusted against Future Tax Liability

The Madras High Court has ruled that export incentive cannot be denied for a technical breach of GST, ordering excess penalty to be adjusted against future tax liability. This significant decision provides relief to exporters, distinguishing between minor procedural errors and deliberate non-compliance that impacts revenue. The court recognized that genuine exports should not be penalized excessively for technicalities. By allowing adjustment of excess penalty against future tax liability, the ruling ensures fairness, promotes export activities, and signals a pragmatic approach to compliance where substantive compliance outweighs minor procedural lapses.