Penalty Under Section 125 of CGST Act

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....enalty Under Section 125 of CGST Act<br> Query (Issue) Started By: - NILESH PITALE Dated:- 26-2-2025 Last Reply Date:- 26-2-2025 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>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 Re....

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....turns, Mere Lapse of Filling of ITC 04 can be cause for invocation of Section 125 Please Guide. Reply By RaamSrinivasan Kalpathi: The Reply: There is no specific penalty for non-filing or belated filing of ITC-04 and hence the Suptt. has chosen to levy general penalty u/s. 125 (max amt being 25k X 2 per year).&nbsp; If the amount of levy is insignificant it would be better to buy peace by payin....

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....g up.&nbsp; Else, the demand can be contested for a lesser value considering that ITC-04 has no revenue implications on the department. Also, to be practical, GST audit u/s. 65 is like unsheathing of the sword.&nbsp; Dept has to see blood for the sword to be sheathed back.&nbsp; The Suptt whosoever came&nbsp; for audit has to show some revenue collection, else, he would stand scrutiny before the ....

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....GCM (group committee meeting of ACs).&nbsp; As there was no other adverse findings he has very conveniently chosen Sec. 125.&nbsp;&nbsp; If the Suptt has charged the&nbsp; maximum penalty please consider filing an Appeal with FAA.&nbsp; You may take a call based purely on the quantum of penalty. Thanks Reply By Sadanand Bulbule: The Reply: In terms of&nbsp;Rule 45 [3]&nbsp;of the&nbsp;CGST Rul....

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....es, filing of&nbsp;ITC-04&nbsp;is mandatory, irrespective of number of change of hands in the chain of such transactions. Invocation of&nbsp;Section 125&nbsp;depends upon the prudence of the AO.<br> Discussion Forum - Knowledge Sharing ....