regarding penalty u/s 125

[FARIDUDDIN AHMAD]

sir my client delayed in filing the GSTR-3B return for the month of Jan 2023 and received intimation u/s 46 on25/02/2023 of UPSGST Act 2017 to file the return within 15 days immediately thereafter GSTR 3B has been field on 01/03/2023. thereafter on same day-i,e on 01/03/2023 notice u/s 125 has been issued by the department. reply to the notice issued u/s 125 has been filed on 06/03/2023 stating the reason for delay was due to the shortage of fund because payments of bills issued to government department for work contract has not been received. however department did not consider my reply and passed the order u/s 125 by fixing demand of Rs-50,000/-(CGST-25000+SGST-25000). kindly provide if any citation is there to defend or any other ground to defend against the order in appeal.

AI Summary

Client Penalized Rs. 50,000 for Late GSTR-3B Filing; Contesting Under Section 126 Due to Financial Hardship Circumstances A client delayed filing the GSTR-3B return for January 2023 due to a shortage of funds from unpaid government contracts. Despite filing the return on March 1, 2023, the department issued a penalty notice under Section 125 of the UPSGST Act. The client responded, explaining the delay, but the department imposed a Rs. 50,000 penalty. Discussion participants suggested using Section 126 to contest the penalty, arguing it is not mandatory and should consider the taxpayer's circumstances. They also referenced past case laws to support the client's appeal against the penalty, highlighting procedural issues and the need for a fair hearing.