Section 125 of GST – General penalty as per GST Act. In this GST Section you may find all details for General penalty as per GST Act as per Revised GST Act 2017. Detailed Analysis of GST Section 125 of GST Act 2017.
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Section 125 of GST – General penalty as per GST Act
Statutory provision
Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.
Related provisions of the Statute:
| Section | Description |
| Section 2(84) | Definition of Person |
| Section 2(107) | Definition of Taxable Person |
| Section 126 | General disciplines related to penalty |
Analysis and Updates
Introduction
The duty of the State is not only to recover all lawful dues from a defaulter, but to do justice towards the law abiding populace to impose a penalty – jus in rem. To this end offences are listed in section 122 along with penalty specifically applicable to each. Any offence that does not have a specific penalty prescribed cannot be let off without penal consequences. Section 125 is a general penalty provision under the GST law for cases where no separate penalty is prescribed under the Act or rules.
Analysis
Penalty upto ` 25,000/- is imposable where any person contravenes:
(a) any of the provisions of the Act; or
(b) rules made thereunder.
for which no penalty is separately prescribed under the Act.
Comparative review
General penalty provisions are more or less in line with the following provisions of subsumed Central laws in addition to the provisions of VAT laws of various States:
| Section/Rule | Act/Rule | Provision |
| Rule 27 | Central Excise Rules, 2002 | General Penalty |
| Rule 15A | Cenvat Credit Rules, 2004 | General penalty |
| Section 77 | Finance Act, 1994 | General penalty for residual offences |
The residuary penalty as prescribed under service tax law and central excise law is upto 10,000/- and 5,000/ respectively-. There is substantial increase in maximum limit of penalty as prescribed under the GST Act.
Frequently Asked Questions
Which are the cases where general penalty can be levied?
The instances where there is no specific penalty prescribed under any other section or rule made thereunder general penalty will be attracted.
What is the amount of general penalty leviable under the Act?
An amount upto ` 25,000/-.
MCQs
Q1. General penalty can be levied in addition to the specific penalties prescribed under the law
(i) Yes, general penalty is levied in addition to the specific penalties
(ii) No, when no specific penalty is prescribed, then only the general penalty applies.
Ans. (ii) No, when no specific penalty is prescribed, then only the general penalty applies.
Q2. If the assessee discovers any default on his own he must pay penalty along under this section?
(i) Yes
(ii) No
Ans. (ii) No.
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