Sec 125- General penalty

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Sec 125- General penalty 2017-04-14T03:04:19+00:00
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    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.

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    125.1  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.
    125.2  Analysis
    Penalty upto rupees twenty five thousand 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
    125.3  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 Act.
    125.4  Related provisions
    Section     Description
    Section 126      General disciplines related to penalty
    125.5 FAQs
    Q1. Which are the cases where general penalty can be levied?
    Ans. The instances where there is no specific penalty prescribed under any other section or rule made thereunder general penalty will be attracted.
    Q2. What is the amount of general penalty leviable under the Act?
    Ans. An amount upto ` 25,000/-
    125.6  MCQs
    Q1. General penalty can be levied in addition to the specific penalties prescribed under the law
    (i)    Yes
    (ii)    No
    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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