TaxTMI 
TaxTMI 
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
penalty u/s 125
08 Oct 2023 
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Penalty for non compliance with notice under section 61 can be challenged; subsequent filing of missing return may avert penalty.
Non response to an intimation under section 61 for return mismatches may lead to penalty proceedings under section 125, which permits imposition up to its maximum but allows the adjudicating authority to impose a lesser penalty if the assessee acted bona fide. Defences include reliance on relief for minor or easily rectifiable breaches, alternative penalty provisions limiting exposure for failure to furnish information, and that subsequent filing of the omitted return may rectify the default. Reply should target the specific grounds in the show cause notice and seek discretionary mitigation. (AI Summary)
Non response to an intimation under section 61 for return mismatches may lead to penalty proceedings under section 125, which permits imposition up to its maximum but allows the adjudicating authority to impose a lesser penalty if the assessee acted bona fide. Defences include reliance on relief for minor or easily rectifiable breaches, alternative penalty provisions limiting exposure for failure to furnish information, and that subsequent filing of the omitted return may rectify the default. Reply should target the specific grounds in the show cause notice and seek discretionary mitigation. (AI Summary)