TaxTMI 
TaxTMI 
100% penalty under sec122 of gst act
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....00% penalty under sec122 of gst act<br> Query (Issue) Started By: - giri gattupalli Dated:- 10-7-2025 Last Reply Date:- 17-7-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>respected sir, one of my client executed works contracts to govt tax departments during FY 2021-22 and nil returns filed during FY 2021-22 after finding lapses, but before issuance of any notice by department we h....
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....ave discharged total liability at 12% amounting to RS 25,00,000 by way of filing FORM -DRC-03 in june-2022 with interest and intimated to department now in July 2025 my client received notice from department invoking SEC 122 of CGST ACT asking to pay 100 % penalty amounting to Rs 25,00,000 as the tax amount did not remitted to govt with in three months of tax collection. i request our respected ....
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....members please to discuss whether 100 % penalty under sec 122 can be invoked where alleged tax liability already discharged . thanking you sir Giri advocate & tax consultant Reply By Sadanand Bulbule: The Reply: Dear Sir Plz refer the following case law: Mahadev Construction Co Vs. Union of India-2020(33) G.S.T L.230 (Jharkhand HC) Held: Section 122 is a penal in nature, and must be interp....
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....retated strictly. Unless it is proved that taxpayer committed specified acts like fraud or misrepresentation of facts, equal penalty is not justified. So, in my opinion nominal penalty may be levied under Section 125 of the Act. Reply By giri gattupalli: The Reply: respected sir thanks to your response and i request other members to continue discussion thanking you Reply By giri gattup....
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....alli: The Reply: respected sir, please continue discussion and give your valuable inputs . case is heading towards legal dispute with dipartment. thanking you Reply By Sadanand Bulbule: The Reply: 2025 (7) TMI 1065 - DELHI HIGH COURT Vinod Kumar Goyal Individual Authorised Representative Vmg Foods Pvt. Ltd. Balraj Kumar Versus The Principal Commissioner Of Central Tax Delhi North & Anr.....
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