penalty u/s 125

[FARIDUDDIN AHMAD]

sir my client received intimation u/s 61 for the period 2017 18 regarding mismatch in 3B Vs R1 due to non filing of GSTR-1. reply to which was not been flied by my client. however GSTR-1 has been flied after receiving intimation u/s 61. finally the officer has issued notice u/s 125 fixing penalty of Rs-50000/-(SGST + CGST) for the reason non compliance to the intimation u/s 61. kindly advise how to defend the notice u/s 125

AI Summary

Client Faces Penalty for GSTR-1 Non-Filing; Debates on Applying Section 126 for Relief Against Section 125 Penalty A client received a notice under Section 61 for discrepancies between GSTR-3B and GSTR-1 due to non-filing of GSTR-1 for 2017-18. After filing GSTR-1 post-notice, a penalty notice under Section 125 was issued for non-compliance. Advisers suggest using Section 126 to argue against the penalty, emphasizing minor breaches and the absence of fraudulent intent. Some argue that Section 125 penalties are mandatory, while others suggest Section 122 may apply, limiting penalties to Rs. 10,000. Filing GSTR-1 may suffice as a response to the notice, and the defense should focus on the grounds specified in the notice.