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

Penalty for delayed GST return filing: raise discretionary nature, hearing requirement, portal constraints and payment with interest as defences.
The taxpayer filed GSTR 3B after a notice, paid tax with interest and late fees, but received a penalty under section 125. Defences include that the penalty is discretionary not mandatory, a hearing is required before imposition, payment of tax with interest and fees mitigates the need for penalty, and portal requirements forcing upfront cash payment exceed statutory prescription. Arguments also rely on pre GST precedents that late payment without mala fide intent is mitigating and recommend raising these and seeking appellate relief and stays against recovery.