Tax Consultant

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...

Section 47 of CGST Act, 2017 – Levy of Late Fee Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Purpose of Section 47 Section 47 provides for the levy of late fee for failure to furnish GST returns within the prescribed time. Late fee is a statutory consequence , distinct from interest or penalty, and is levied automatically by the GST system. 2. Statutory Provision – Section 47 Section 47(1): Any registered person who fails to furnish a return under section 39, section 44 or section 45 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues, subject to a maximum of five thousand rupees . Section 47(2): Any registered person who fails to furnish the annual return under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues, subject to a maximum amount of twenty-fi...