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CGST Act Section 123: Penalty for failure to furnish information return | Finin2min

Section 123 - Penalty for failure to furnish information return

Chapter XIX - Offences and Penalties
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Source control: The text/status on this page is tied to the official source gateway and the Phase 1 legal-review register. Open official source.

Finin2min Summary - Section in 2 Minutes

Imposes a daily penalty after failure to furnish an information return despite statutory notice, subject to the section cap.

Exact operative text

Paragraph-wise decode

Imposes a daily penalty after failure to furnish an information return despite statutory notice, subject to the section cap.

Section-Rule-Form-Notification bridge

No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.

The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.

Practical example

A reporting institution ignores a section 150 notice for 20 days. The daily penalty is computed only for the statutory default period and within the cap.

Professional alert

Read the provision with its linked Rules, Gazette commencement, delegation, State GST counterpart and binding judicial interpretation before applying it to a live case.

Section 124 - Fine for failure to furnish statistics OPERATIVE STATUTORY TEXT 124. Fine for failure to furnish statistics.-If any person required to furnish any information or return under section 151,-

(a) without reasonable cause fails to furnish such information or return as may be required under that section, or

(b) wilfully furnishes or causes to furnish any information or return which he knows to be false, he shall be punishable with a fine which may extend to ten thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues subject to a maximum limit of twenty-five thousand rupees. DECODED SIMPLY Penalises unjustified failure or knowingly false furnishing of statistics or information called under section 151. PRACTICAL EXAMPLE A person knowingly supplies false statistical data in response to a section 151 order. The authority records why the information was false and wilful. EXCEPTION / PROFESSIONAL ALERT Read the provision with its linked Rules, Gazette commencement, delegation, State GST counterpart and binding judicial interpretation before applying it to a live case.

Implementation checklist

  1. Fix the transaction, taxable period and jurisdiction.
  2. Read every subsection, proviso, explanation and omission marker.
  3. Open the mapped Rule, form, notification and circular.
  4. Test State/UT variation and portal version.
  5. Preserve evidence, approvals, working papers and acknowledgements.
  6. Record the conclusion, assumptions, source date and reviewer.

Evidence and retention checklist

Practical Q&A

What does section 123 regulate?
It regulates penalty for failure to furnish information return. Read the exact text, conditions, exceptions and transaction date together.
Which subordinate law should be checked?
No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
What evidence should be retained?
Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
Can portal behaviour override the statute?
No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.