General penalty under Section 125

[MAHTAB KHAN]

An assessee delays filing GSTR-3B, Section 47 of the GST Act already prescribes a late fee, which is paid. AO still impose a general penalty under Section 125 for the same delay. When the Act already imposes a late fee under Section 47 for late filing of GSTR-3B, and the same has been paid, on what basis is an additional penalty under Section 125 justified? Is this not double penalty for one lapse? The AO’s imposition of Section 125 penalty is legally sustainable??

AI Summary

No Additional Penalty Under Section 125 If Late Fee Paid Under Section 47 for GSTR-3B Delays When an assessee delays filing GSTR-3B and pays the late fee under Section 47 of the GST Act, imposing an additional penalty under Section 125 is not legally justified. Section 125 penalties apply only when no penalty under Section 47 is levied. The late filing is considered a minor breach without fraudulent intent or gross negligence, and additional penalties would contradict legislative intent and principles of natural justice. Courts have ruled against imposing Section 125 penalties alongside Section 47 late fees, affirming that the late fee is the sole penalty for such delays. Therefore, the imposition of a general penalty under Section 125 in these circumstances is unsustainable and can be contested.