Lucknow, June 12 -- The Allahabad High Court has ruled that GST officers in a transit state have no authority to impose penalties on goods passing through their jurisdiction when neither the origin nor the destination of the consignment lies within that state, in a judgment seen as significant for India's 'One Nation, One Tax' framework.

The ruling came in Maruti Enterprises vs State of Uttar Pradesh & Others, a batch of writ petitions before the court, Tax India Online reported.

The High Court ruling brings much-needed certainty and protection for traders and MSMEs, especially those engaged in interstate trade, by curbing disruptions by transit-state authorities or GST officials and easing compliance pressures.

Background

Maruti Ente...