Penalty Under Section 125 of CGST Act

[NILESH PITALE]

Dear Expert

In GST Audit Case, Auditing Officer has Imposed Penalty U/s 125 for Non-Filling of ITC-04, On the Other Hand From inception of GST Era We are Very Prompt and Diligent in Paying taxes & Filling of the Returns, Mere Lapse of Filling of ITC 04 can be cause for invocation of Section 125

Please Guide.

AI Summary

Penalty Imposed Under Section 125 of CGST Act for ITC-04 Non-Filing Sparks Debate on Compliance and Appeals An auditing officer imposed a penalty under Section 125 of the CGST Act for not filing ITC-04, despite the party's consistent tax compliance. One respondent suggested that since there is no specific penalty for ITC-04 non-filing, the officer used a general penalty, advising either payment for peace or contesting the demand due to ITC-04's lack of revenue impact. Another respondent emphasized that filing ITC-04 is mandatory, and invoking Section 125 is at the officer's discretion. They advised considering an appeal if the maximum penalty was charged, based on the penalty's amount.