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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...

Background of the Case Case Name Tvl R P G Traders vs State Tax Officer W.P.(MD) No. 35398 of 2025 Madras High Court Order dated: 12.12.2025 Introduction The Madras High Court has given an important ruling clarifying that general penalty under Section 125 of the CGST Act, 2017 cannot be imposed where a specific late fee is already leviable under Section 47 of the GST Act . This judgment is extremely beneficial for taxpayers who are facing double penal action for delayed filing of GST returns, especially annual returns. This article explains: Legal provisions of Sections 47 and 125 Facts of the Madras High Court case Exact wording of the High Court order Legal reasoning adopted by the Court Practical relief available to taxpayers 30 detailed FAQs with answers Brief Facts of the Case The taxpayer failed to file GST annual return within time. The department levied: Late fee under Section 47 , and General penalty under Section 125 through DRC-07. T...