GST Returns: No Penalty for non-filing or delayed filing of returns if Late fees already levied:

Court rules that no additional penalty under Section 125 is applicable if late fee under Section 47 has already been levied for delayed GST return filing.

No Penalty for Non-Filing Or Delayed Filing of GST Returns If Late Fees Already Imposed

CA Pratibha Goyal

Apr 17, 2025

Last update on Apr 17, 2025

GST Returns: No Penalty for Non-Filing Or Delayed Filing of Returns If Late Fees Already Levied Facts of the Case

The petitioner, Tvl. Jainsons Castors & Industrial Products challenged an order dated 24.07.2004 issued in Form GST DRC-07 under Section 73 of the TNGST Act, 2017, alleging it was illegal and against principles of natural justice.
The petitioner contended that it had delayed filing its annual return as per Section 44, but the show cause notice and demand issued under Section 73 was not preceded by a proper notice under Section 46.
The petitioner did not dispute the late fee under Section 47 but objected to the imposition of a penalty under Section 125 of the Act.

Issues Framed

Whether imposition of penalty under Section 125 in addition to late fee under Section 47 is legally sustainable.
Whether initiating proceedings under Section 73 without issuing a notice under Section 46 violates principles of natural justice.

Petitioner’s Arguments

Section 47 specifically provides for late fees in case of delay in filing returns; Section 125’s general penalty cannot be simultaneously imposed.
No notice under Section 46 was issued before initiating proceedings under Section 73.
Return was filed, albeit belatedly, and turnover was not declared.

Respondent’s Arguments

Proceedings under Section 47 r/w Section 73 were rightly initiated due to the petitioner’s failure to file annual returns under Section 44.
Penalty and late fee were both levied due to non-furnishing of turnover details.

Court’s Decision & Rationale

The Court held that Section 47(2) exclusively governs late fees for non-filing or delayed filing of returns and allows a fee of Rs. 100 per day subject to a maximum limit.
Section 125 is a residuary penalty clause applicable only when no specific penalty is otherwise provided.
Since a specific penalty (late fee) under Section 47 was imposed, the general penalty under Section 125 was not applicable.

The Court confirmed the levy of a late fee under Section 47 but quashed the penalty imposed under Section 125. Read Order

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.