Section 124 – Fine for Failure to Furnish Statistics

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Section 124 of CGST Act, 2017 – Fine for Failure to Furnish Statistics

Updated on: June 2026 (as applicable till date)
Prepared by: Yours Tax Consultant

1. Objective of Section 124

Section 124 provides for the imposition of a fine where a person who is required to furnish statistics under Section 151 of the CGST Act fails to do so or knowingly furnishes false statistical information.

The provision aims to ensure the accuracy and reliability of statistical data collected for GST administration, policy formulation and economic analysis.

2. Statutory Provision – Section 124

If any person required to furnish statistics under Section 151:

  • Fails to furnish the required statistics without reasonable cause, or
  • Knowingly furnishes false statistics

he may be punished with a fine which may extend to ₹10,000.

Where the offence continues after conviction, an additional fine may extend to ₹100 per day for the period during which the failure continues.

3. Link with Section 151

Section 151 empowers the Commissioner to direct certain persons to furnish statistics relating to matters connected with GST.

The information may be required for:

  • Policy formulation
  • Economic research
  • Revenue analysis
  • Tax administration
  • Compliance monitoring

4. Circumstances Attracting Fine

Fine under Section 124 may be imposed when:

  • Statistics are not furnished as directed
  • The failure occurs without reasonable cause
  • False statistical information is knowingly provided
  • The person refuses to comply with a lawful direction under Section 151

5. Quantum of Fine

Nature of Default Fine
Failure to furnish statistics Up to ₹10,000
Knowingly furnishing false statistics Up to ₹10,000
Continuing default after conviction Up to ₹100 per day

6. Meaning of "Reasonable Cause"

The Act does not specifically define reasonable cause. However, examples may include:

  • Natural calamities
  • System failures beyond control
  • Serious illness
  • Other genuine circumstances preventing compliance

The burden generally lies on the person to demonstrate the existence of reasonable cause.

7. Practical Examples

Example 1:
A notified authority is directed to furnish GST-related statistical data but fails to submit it without any valid reason. Fine under Section 124 may be imposed.

Example 2:
A person knowingly submits incorrect statistical information to the GST authorities. Such conduct may attract the prescribed fine.

8. Importance of Section 124

Accurate statistical information is essential for:

  • Effective tax policy decisions
  • Revenue forecasting
  • Economic planning
  • GST compliance analysis

Section 124 helps maintain the integrity of such data.

9. Section 124 vs Section 123

Section 123 Section 124
Failure to furnish Information Return Failure to furnish Statistics
Connected with Section 150 Connected with Section 151
Penalty up to ₹5,000 Fine up to ₹10,000
₹100 per day penalty ₹100 per day after conviction

10. Related Provisions

11. Professional Insight

Although Section 124 is not frequently invoked in routine GST practice, it plays an important role in ensuring that statistical information collected by the Government is accurate and reliable. Such information supports policy decisions, revenue estimation and effective tax administration.

Disclaimer: This article is prepared based on the CGST Act, 2017 and the legal position applicable as on date. Readers should refer to the latest amendments, notifications, rules and judicial precedents before relying upon any provision.

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