Chapter XIX - Offences and penalties
Section 122A
Section 122A: Penalty for failure to register certain machines
Where a section 148 special procedure requires registration of manufacturing machines, contravention can bring a per-machine penalty and confiscation consequence.
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Need advice on Section 122A?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.
(2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation: Provided that such machine shall not be confiscated where— (a) the penalty so imposed is paid; and (b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.
Key takeaways
Notification gate
The section applies to manufacture of goods covered by a notified section 148 machine-registration procedure; coverage must be checked against the current notification.
Per-machine amount
The penalty is one lakh rupees for every machine not registered under that special procedure, in addition to other applicable penalties.
Confiscation exception
An unregistered machine is not confiscated if the penalty is paid and it is registered under the procedure within three days of communication of the penalty order.
Notification gate
The section applies to manufacture of goods covered by a notified section 148 machine-registration procedure; coverage must be checked against the current notification.
Per-machine amount
The penalty is one lakh rupees for every machine not registered under that special procedure, in addition to other applicable penalties.
Confiscation exception
An unregistered machine is not confiscated if the penalty is paid and it is registered under the procedure within three days of communication of the penalty order.
Practical checklist
Do
- Verify the goods and effective section 148 notification.
- List each machine and registration record.
- Track the three-day period from penalty-order communication if using the exception.
Frequently asked questions
Does section 122A apply to every manufacturer?
No. It depends on a section 148 notified special procedure for the relevant goods.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026