Chapter XIX - Offences and penalties
Section 123
Section 123: Penalty for failure to furnish information return
A person required to furnish an information return under section 150 can face a daily penalty if the return remains missing after the notice period.
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Need advice on Section 123?
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
If a person who is required to furnish an information return under section 150 fails to do so within the period specified in the notice issued under sub-section (3) thereof, the proper officer may direct that such person shall be liable to pay a penalty of one hundred rupees 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.
Key takeaways
Notice trigger
The obligation becomes penal under section 123 when the person does not furnish the section 150 return within the period specified in the section 150(3) notice.
Daily amount
The proper officer may direct a penalty of one hundred rupees per day while the failure continues.
Maximum
The penalty under this section cannot exceed five thousand rupees.
Notice trigger
The obligation becomes penal under section 123 when the person does not furnish the section 150 return within the period specified in the section 150(3) notice.
Daily amount
The proper officer may direct a penalty of one hundred rupees per day while the failure continues.
Maximum
The penalty under this section cannot exceed five thousand rupees.
Practical checklist
Do
- Identify the section 150 notice and its specified period.
- File the missing information return.
- Calculate continuation days against the five-thousand-rupee cap.
Frequently asked questions
Does this penalty start automatically when a return is first missed?
Section 123 refers to failure within the period specified in a notice under section 150(3).
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026