Section 127 of GST Act: Power to impose penalty in certain cases

Amended and updated notes on section 127 of CGST Act, 2017. Detail discussion on provisions and rules related to power to impose penalty in certain cases.

Amended and updated notes on section 127 of CGST Act, 2017. Detail discussion on provisions and rules related to power to impose penalty in certain cases.

Chapter XIX (Sections 122138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 127 of CGST 2017 provides for power to impose penalty in certain cases.

Recently, we have discussed in detail section 126 (General disciplines related to penalty) of CGST Act 2017. Today, we learn the provisions of section 127 of Central GST Act 2017.

Section 127 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 127 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.127
Section NamePower to impose penalty in certain cases
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Section 127:

  • 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 127 of Central GST – Power to impose penalty in certain cases1

Section 127 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.

Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or section 74 or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.

  1. Section 127 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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