Guide on Section 123 of CGST Act - Penalty for failure to furnish information return

Last Updated: 18-03-2026

Contents

Para	Topics	Relevant Section/Rules/N/C/O
123.1	Penalty for failure to furnish information return u/s 150	Section 123
123.2	Procedure for issue of notice and order	Rule 142

123.1 Penalty for failure to furnish information return u/s 150

Section 123

If a person who is required to furnish an information return u/s 150 fails to do so within the period specified in the notice issued u/ss (3) thereof,

the proper officer may direct that such person shall be liable to pay a penalty of Rs.1,000

for each day of the period during which the failure to furnish such return continues:

Provided that the penalty imposed under this section shall not exceed five thousand rupees.

123.2 Procedure for issue of notice and order

	PO shall issue notice u/s 124 along with DRC-01. [Refer Para 142.1 of Rule 142(1)]
	Reply shall be in DRC-06 against notice [Refer Para 142.1.3 of Rule 142(4)]
	PO shall issue order in DRC-07 [Refer Para 142.1.4 of Rule 142(5)]

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Guide on Section 123 of CGST Act - Penalty for failure to furnish information return