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

General penalty for contravention of GST rules may be invoked, subject to mitigation and procedural safeguards.
Delayed filing of an amendment application under Rule 19(1) breaches the rule and, where no specific penalty is provided, the department may propose a general penalty under section 125. Rule 19(2) allows rejection for incomplete or unwarranted amendments and Rule 19(5) addresses administrative inaction leading to deemed amendment, but those provisions do not necessarily bar imposition of a general penalty for late filing. Defences include invoking Section 126 mitigating factors, seeking condonation of delay, submitting a substantive reply, and pursuing appellate remedies.