Late fee for delayed GST annual returns bars additional general penalty under Section 125, Madras HC says.

Where delayed filing of annual returns already attracts late fee under the Tamil Nadu GST Act, a general penalty under Section 125 cannot be sustained in the absence of an independent penalty provision. The Madras HC set aside the general penalty while sustaining the late fee liability and directing payment of the fee within the stipulated period. The note also refers to the late fee position and the Rs. 10,000 limit in the relevant class of cases, but distinguishes the petitioner's case on the issue of general penalty.

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Issues: Whether the imposition of general penalty under Section 125 of the Tamil Nadu Goods and Services Tax Act, 2017, in addition to the late fee payable for delayed filing of annual returns, was sustainable.

Analysis: The order follows the earlier view that where late fee is the applicable consequence for delayed annual returns, general penalty under Section 125 cannot be imposed in the absence of any other independent penalty under the GST enactment. The court also noted the position regarding late fee liability and the limit of Rs.10,000/- in the relevant class of cases, while distinguishing the petitioner's case on the question of general penalty.

Conclusion: The general penalty under Section 125 was set aside, and the petitioner was directed to pay the late fee already imposed within the stipulated period.

Final Conclusion: The petition was allowed only to the extent of deleting the general penalty, while the late fee liability was sustained.

Ratio Decidendi: General penalty under Section 125 of the Tamil Nadu Goods and Services Tax Act, 2017, cannot be sustained where the statute already provides for late fee in respect of delayed filing of annual returns.

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