Businesses often face small mistakes in GST invoices – a wrong GSTIN, spelling errors, or address mismatches. But can such technical errors lead to denial of Input Tax Credit (ITC)?
The Delhi High Court recently answered this in the case of B Braun Medical India Pvt. Ltd. vs Union of India. The ruling comes as a relief for taxpayers, as it shows that substance is more important than form when it comes to ITC.
Facts of the Case
B Braun Medical India purchased goods from its supplier.
The supplier mistakenly mentioned the GSTIN of the company’s Bombay branch instead of its Delhi unit.
However, the goods were delivered to Delhi, and the company actually used them there.
The Tax Department argued that since the GSTIN did not match the place of supply, ITC should be denied.
The company approached the High Court.
Issue Before the Court
Can ITC be denied just because the GSTIN mentioned on the invoice was of a different branch even though the goods were genuinely received and used by the company?
High Court’s Decision
The Delhi High Court ruled in favour of B Braun Medical India.
The Court said:
Substance over technicality – If the transaction is genuine, goods were received, and tax was paid to the government, ITC cannot be denied merely for a clerical error in GSTIN.
Purpose of GST – The goal of GST is to avoid tax cascading and allow credit for genuine business transactions. Denying ITC for minor mistakes goes against the spirit of GST law.
Genuine Transaction – The department did not dispute that goods were received in Delhi and tax was duly paid. Hence, denying credit only on technical grounds was unfair.
Result: The company was allowed to claim ITC.
Why This Case Is Important
This case highlights that:
Small errors in invoices should not cost you your ITC if the transaction is genuine.
Goods received + tax paid are the two most important conditions for ITC eligibility.
Tax officers cannot deny ITC for clerical mistakes if the substance of the transaction is correct.
Practical Lessons for Businesses
✅ Always verify GSTINs while issuing/receiving invoices.
✅ If errors occur, keep proof that the goods/services were actually received (delivery challans, e-way bills, GRNs, stock registers).
✅ Maintain proper documentation to show tax has been paid by supplier.
✅ If ITC is denied for minor clerical mistakes, you can challenge it citing this judgment.
Key Takeaway
The Delhi High Court’s ruling in B Braun Medical India vs Union of India is a reminder that GST law is not meant to punish businesses for minor technical errors. What really matters is whether the transaction is genuine and tax has reached the government’s pocket.
👉 So, if you face ITC issues due to invoice mismatches, don’t panic. With proper evidence, you can defend your claim successfully.
