Penalty under section 125

[VIGNESH]

Sir. Can both , penalty and late fee imposed on late filing of GSTR-9 ? is there any notification or case law to rely for any waiver. kindly refer

[VIGNESH]

sir/mdm. In continuation to the above, kindly clarrify.

1.Can both , penalty and late fee imposed on late filing of GSTR-9 ?

2. is Section 125 levy at the discretion of the officer ?

3. Does section 126 relating to General disciplines related to penalty covers section 125, can we take advantage of the same?.

[KASTURI SETHI]

Query-wise reply :

1. Late fee is also a kind of punishment (penalty/fine). An assessee cannot be punished twice for the SAME offence. However, the provision of late fee motivates a person to be in time.

2. See the language of Section 125 "----------may extend to twenty five thousand rupees" It means maximum penalty is 25,000/- and minimum amount of penalty depends upon the degree of gravity of offence. He cannot go beyond Rs.25,000/- but below Rs.25,000/- is his discretion.

3. No. Both are exclusive.

[VIGNESH]

Thank u Guruji for the reply

[KASTURI SETHI]

Dear Vignesh Ji,

Have you received SCN on this issue ? If so, you may please post relevant contents here.

[KASTURI SETHI]

In continuation to my replies, in my view penalty cannot be imposed for late filing Annual Return with late fee but penalty can be imposed under Section 125 for NOT filing Annual Return.

[VIGNESH]

Content of notice - Please note that as per section 47 of the TNGST Act 2017, a late fee of two hundred rupees ( Rs 100 CGST and Rs. 100 SGST) is liable to pay for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent of turnover in the State.

Apart from the above late fee , a general penalty under section 125 of the TN GST Act 2017 is liable to pay which may extend to fifty thousand rupees (Rs. 25000/- -CGST and Rs. 25000 – SGST) will also be levied .

[KASTURI SETHI]

This is neither the intention of the legislature nor the Govt. I am firm.You must fight the case. I suggest you to try to trace out the case law on the issue pertaining to pre-GST era. I remember very well that during Central Excise era such case was dropped by CESTAT. Must try.

AI Summary

Can Penalties and Late Fees Be Imposed Together for Late GSTR-9 Filing? Explore Section 125 and Legal Nuances. A discussion on a forum addresses the imposition of penalties and late fees for late filing of GSTR-9 under GST law. A participant questions whether both penalties and late fees can be imposed simultaneously and seeks guidance on relevant notifications or case law for waivers. Responses clarify that late fees are a form of penalty, and one cannot be penalized twice for the same offense. Section 125 allows discretion in penalty imposition, capped at INR 25,000. It is suggested that penalties cannot be imposed for late filing if a late fee is paid, but penalties apply for non-filing. Participants discuss the legal nuances and suggest exploring case law from the pre-GST era for defense.