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

Section 125 penalty not sustainable for delayed GSTR-3B after paying Section 47 late fee absent deliberate contravention An assessee queried whether a general penalty under Section 125 can be imposed for delayed GSTR-3B filing when the statutory late fee under Section 47 has been paid. Respondents uniformly held that imposing Section 125 in such cases is unsustainable absent deliberate contravention, fraud, or gross negligence, because the late fee under Section 47 addresses the lapse and additional penalty would amount to double punishment; recent high court decisions have supported this view. The consensus recommendation is to contest any Section 125 levy through appropriate legal challenge.