diff --git a/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTest.java b/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTest.java
index e2f57d478f..07ec5b9700 100644
--- a/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTest.java
+++ b/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTest.java
@@ -138,7 +138,7 @@ public void testInValidInputPayloadArgs() {
         Package currentPackage = loadPackage("sample_package_4");
         PackageCompilation compilation = currentPackage.getCompilation();
         DiagnosticResult diagnosticResult = compilation.diagnosticResult();
-        Assert.assertEquals(diagnosticResult.errorCount(), 8);
+        Assert.assertEquals(diagnosticResult.errorCount(), 7);
         assertError(diagnosticResult, 0, "invalid multiple resource parameter annotations for 'abc': expected one of " +
                 "the following types: 'http:Payload', 'http:CallerInfo', 'http:Header', 'http:Query'", HTTP_108);
         assertError(diagnosticResult, 1, "invalid usage of payload annotation for a non entity body " +
@@ -147,13 +147,11 @@ public void testInValidInputPayloadArgs() {
                 "resource : 'head'. Use an accessor that supports entity body", HTTP_129);
         assertError(diagnosticResult, 3, "invalid usage of payload annotation for a non entity body resource" +
                 " : 'options'. Use an accessor that supports entity body", HTTP_129);
-        assertError(diagnosticResult, 4, "invalid annotation type on param 'a': expected one of the following types: " +
-            "'http:Payload', 'http:CallerInfo', 'http:Header', 'http:Query'", CompilerPluginTestConstants.HTTP_104);
-        assertTrue(diagnosticResult, 5, "invalid payload parameter type: 'string|ballerina/http:",
+        assertTrue(diagnosticResult, 4, "invalid payload parameter type: 'string|ballerina/http:",
                 CompilerPluginTestConstants.HTTP_107);
-        assertTrue(diagnosticResult, 6, "invalid payload parameter type:",
+        assertTrue(diagnosticResult, 5, "invalid payload parameter type:",
                 CompilerPluginTestConstants.HTTP_107);
-        assertTrue(diagnosticResult, 7, "invalid payload parameter type:",
+        assertTrue(diagnosticResult, 6, "invalid payload parameter type:",
                 CompilerPluginTestConstants.HTTP_107);
     }
 
diff --git a/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTestConstants.java b/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTestConstants.java
index 555781b659..f7559fd76e 100644
--- a/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTestConstants.java
+++ b/compiler-plugin-tests/src/test/java/io/ballerina/stdlib/http/compiler/CompilerPluginTestConstants.java
@@ -26,7 +26,6 @@ private CompilerPluginTestConstants() {}
 
     public static final String HTTP_101 = "HTTP_101";
     public static final String HTTP_102 = "HTTP_102";
-    public static final String HTTP_104 = "HTTP_104";
     public static final String HTTP_105 = "HTTP_105";
     public static final String HTTP_106 = "HTTP_106";
     public static final String HTTP_107 = "HTTP_107";
diff --git a/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpResourceValidator.java b/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpResourceValidator.java
index e591774203..77d40558c7 100644
--- a/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpResourceValidator.java
+++ b/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpResourceValidator.java
@@ -382,7 +382,6 @@ public static void extractInputParamTypeAndValidate(SyntaxNodeAnalysisContext ct
                     continue;
                 }
                 if (!HTTP.equals(nameSymbolOptional.get())) {
-                    reportInvalidParameterAnnotation(ctx, paramLocation, paramName);
                     continue;
                 }
 
@@ -452,7 +451,6 @@ public static void extractInputParamTypeAndValidate(SyntaxNodeAnalysisContext ct
                         break;
                     }
                     default:
-                        reportInvalidParameterAnnotation(ctx, paramLocation, paramName);
                         break;
                 }
             }
@@ -921,11 +919,6 @@ private static boolean isValidReturnTypeWithCaller(TypeSymbol returnTypeDescript
         }
     }
 
-    private static void reportInvalidParameterAnnotation(SyntaxNodeAnalysisContext ctx, Location location,
-                                                         String paramName) {
-        updateDiagnostic(ctx, location, HttpDiagnosticCodes.HTTP_104, paramName);
-    }
-
     private static void reportInvalidParameter(SyntaxNodeAnalysisContext ctx, Location location,
                                                String paramName) {
         updateDiagnostic(ctx, location, HttpDiagnosticCodes.HTTP_105, paramName);