Section 124 of CGST Act, 2017 : Section 124: Fine For Failure To Furnish Statistics

Explanation using Example

Let's say a business owner, Mr. Sharma, operates a manufacturing unit and is registered under the GST regime. The GST authorities, suspecting some discrepancies in his operations, issue a notice to Mr. Sharma under Section 151 of The Central Goods and Services Tax Act, 2017, requiring him to furnish certain information regarding his supplies and stock for a specific period.

Scenario 1: Mr. Sharma, without any reasonable cause, neglects the notice and fails to provide the requested information within the stipulated time. As a result, under Section 124 of the Act, he is liable to be fined up to ten thousand rupees for non-compliance.

Scenario 2: Alternatively, Mr. Sharma decides to provide the information but knowingly submits false records to the authorities to evade taxes. This act of wilfully furnishing false information makes him subject to a fine which may extend to ten thousand rupees, and if the offence continues, an additional fine of up to one hundred rupees for each day of non-compliance can be imposed, subject to a maximum of twenty-five thousand rupees.