Section 123 of GST Act: Penalty for failure to furnish information return

Amended and updated notes on section 123 of CGST Act, 2017. Discussion on provisions and rules related to penalty for failure to furnish information return.

Amended and updated notes on section 123 of CGST Act, 2017. Detail discussion on provisions and rules related to penalty for failure to furnish information return.

Chapter XIX (Sections 122138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 123 of CGST 2017 provides for penalty for failure to furnish information return.

Recently, we have discussed in detail section 122 (Penalty for certain offences) of CGST Act 2017. Today, we learn the provisions of section 123 of Central GST Act 2017.

Section 123 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 123 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.XIX
Chapter NameOffences and Penalties
Section No.123
Section NamePenalty for failure to furnish information return
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Section 123:

  • Rule 142: Notice and order for demand of amounts payable under the Act
    • FORM GST DRC – 01: Summary of Show Cause Notice
    • FORM GST DRC – 01A: Intimation of tax ascertained as being payable under section 73(5)/74(5)
    • FORM GST DRC – 02: Summary of Statement
    • FORM GST DRC – 03: Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement or intimation of tax ascertained through
    • FORM GST DRC-01A
    • FORM GST DRC – 04: Acknowledgement of acceptance of payment made voluntarily
    • FORM GST DRC – 05: Intimation of conclusion of proceedings
    • FORM GST DRC – 06: Reply to the Show Cause Notice
    • FORM GST DRC – 07: Summary of the order
    • FORM GST DRC – 07A: Summary of the order creating demand under existing laws
    • FORM GST DRC – 08: Summary of Rectification /Withdrawal Order

Section 123 of Central GST – Penalty for failure to furnish information return1

Section 123 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

If a person who is required to furnish an information return under section 150 fails to do so within the period specified in the notice issued under sub-section (3) thereof, the proper officer may direct that such person shall be liable to pay a penalty of one hundred rupees for each day of the period during which the failure to furnish such return continues:

Provided that the penalty imposed under this section shall not exceed five thousand rupees.

  1. Section 123 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎


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