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Section 129 of CGST Act, 2017 – Detention, Seizure and Release of Goods and Conveyances in Transit Act: Central Goods and Services Tax Act, 2017 Chapter: XIX – Offences and Penalties Section Covered: Section 129 Effective From: 01st July 2017 (Substantially amended by the Finance Act, 2021 w.e.f. 01.01.2022) 🔎 Introduction Section 129 of the CGST Act, 2017 provides the legal framework for the detention, seizure and release of goods and conveyances while they are in transit where such goods are transported in contravention of the provisions of the CGST Act or the Rules made thereunder . The primary objective of this provision is to prevent tax evasion during the movement of goods while ensuring that genuine taxpayers are afforded an opportunity to secure the release of detained goods and conveyances by following the prescribed procedure. The Finance Act, 2021 significantly amended Section 129 with effect from 1st January 2022 , making the penalty provisions independent of...

Section 128 of CGST Act, 2017 – Power to Waive Penalty or Fee or Both Act: Central Goods and Services Tax Act, 2017 Chapter: XIX – Offences and Penalties Section Covered: Section 128 Effective From: 01st July 2017 (Subsequently amended) 🔎 Introduction Section 128 of the CGST Act, 2017 empowers the Government , on the recommendations of the GST Council , to waive, either fully or partially, any penalty, late fee, or both payable under the CGST Act. This provision enables the Government to provide relief to taxpayers in deserving circumstances, particularly where widespread procedural defaults, technical issues, or exceptional situations warrant relaxation. Such waivers are generally notified through Official Notifications and are applicable only to the class of taxpayers or periods specified therein. Section 128 reflects the Government's commitment to promoting voluntary compliance while ensuring that taxpayers are not unduly burdened by penalties or late fees in gen...

Section 127 of CGST Act, 2017 – Power to Impose Penalty in Certain Cases Act: Central Goods and Services Tax Act, 2017 Chapter: XIX – Offences and Penalties Section Covered: Section 127 Effective From: 01st July 2017 🔎 Introduction Section 127 of the CGST Act, 2017 empowers the proper officer to impose a penalty in cases where a person commits a contravention of the GST provisions for which no separate penalty has been specifically prescribed under the Act. This provision acts as a residuary penalty mechanism , ensuring that every violation of the GST law can be addressed appropriately, even if it is not expressly covered by another penalty provision. It should, however, be read together with Section 125 (General Penalty) and Section 126 (General Disciplines Related to Penalty) , which require that penalties be imposed fairly, proportionately, and after following the principles of natural justice. 📜 Bare Provision – Section 127 Section 127 has been omitted by the F...

Section 126 of CGST Act, 2017 – General Disciplines Related to Penalty Act: Central Goods and Services Tax Act, 2017 Chapter: XIX – Offences and Penalties Section Covered: Section 126 Effective From: 01st July 2017 🔎 Introduction Section 126 of the CGST Act, 2017 lays down the general principles (or disciplines) that every GST authority must follow while imposing penalties under the Act. The objective of this provision is to ensure that penalties are imposed fairly, reasonably, and proportionately , instead of being levied mechanically for every procedural lapse. This section reflects the legislative intent that penalty is a consequence of a deliberate or significant contravention , and not merely of every minor mistake or technical breach. 📜 Bare Provision – Section 126 Section 126 provides that: (1) No substantial penalty for minor breaches No officer shall impose a substantial penalty for— A minor breach of tax regulations or procedural requirements; or An ...

Section 125 of CGST Act, 2017 – General Penalty Updated on: June 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 125 Section 125 serves as a residual or general penalty provision under the GST law. It applies where a person contravenes any provision of the CGST Act or the rules made thereunder for which no separate penalty has been specifically prescribed. The provision ensures that every statutory obligation under GST remains enforceable, even where a specific penalty section is not available. 2. Statutory Provision – Section 125 Any person who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided under this Act, shall be liable to a penalty which may extend to: ₹25,000 3. Nature of Section 125 Section 125 is commonly known as the: General Penalty Provision Residual Penalty Provision Default Penalty Provision It is invoked only when...

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. L...

Section 123 of CGST Act, 2017 – Penalty for Failure to Furnish Information Return Updated on: June 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 123 Section 123 imposes a penalty on persons who are required to furnish an Information Return under Section 150 of the CGST Act but fail to do so within the prescribed time. The provision helps the GST administration obtain information from various sources for verification, compliance monitoring and prevention of tax evasion. 2. Statutory Provision – Section 123 Where a person who is required to furnish an information return under Section 150 fails to do so within the prescribed period, the proper officer may direct such person to furnish the return within a specified period. If the person continues to fail in furnishing the information return, he shall be liable to a penalty of: ₹100 per day during which the failure continues, subject to a maximum penalty of ₹5,000. ...

Section 122 of CGST Act, 2017 – Penalty for Certain Offences Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 122 Section 122 prescribes penalties for specified offences committed under GST law. The provision aims to: Prevent tax evasion Discourage fake invoicing Protect input tax credit system Ensure compliance with GST provisions 2. Statutory Provision – Section 122(1) A taxable person committing specified offences shall be liable to: Penalty of ₹10,000 or an amount equivalent to the tax evaded, tax not deducted, tax not collected, input tax credit wrongly availed or utilized, or refund wrongly taken, whichever is higher. 3. Major Offences Covered under Section 122(1) Supply without issuing invoice Issuing invoice without actual supply (fake invoice) Collecting tax but not paying to Government Wrong availment or utilization of ITC Fraudulent refund claims Fa...