Revenue cannot Levy Penalty on Belated GST Returns and then Disallow ITC due to Belated Filing: Madhya Pradesh HC

The Madhya Pradesh High Court has ruled that the revenue authorities cannot levy a penalty on belated GST returns and then disallow input tax credit (ITC) due to the delayed filing. The court emphasized that imposing a penalty for the delay and simultaneously disallowing ITC would create a situation of double jeopardy for taxpayers. The ruling is important as it provides relief to businesses facing dual penalties for the same issue. It reinforces the principle that penalties and disallowances should be consistent and not lead to excessive punitive action for the same offense under GST.