Levy of General Penalty Under Section 125

[Ashiesh Prremji]

Dear Experts,

We applied GST REG -13 for amendment in Principal Place of Business after prescribed time (50 days) as per Rule 19 (1) as on 08-08-22.

We got SCN dated 02-09-22 mentioning Levy of penalty u/s 125 as we contravened provision of rule 19(1) read with Section 28 (1).

My point is whether this SCN is valid as per Rule 19(2) & (5) although 19(2) use the word 'may'?

Thank You !

AI Summary

Forum Explores GST Act Section 125 Penalties: Addressing Show Cause Notice for Delayed Business Amendment Application. A discussion on a forum regarding the levy of a general penalty under Section 125 of the GST Act. A user sought advice after receiving a Show Cause Notice (SCN) for a delayed amendment application for their principal place of business. Experts responded, explaining that while Rule 19(2) allows for rejection of amendments for incomplete documentation, it does not address delays. Section 125 allows for penalties when no specific penalty is provided, but Section 126 suggests penalties should be proportionate and not mandatory. The general consensus was to address the SCN on its merits and possibly seek condonation of delay, emphasizing a non-confrontational approach.