Section 124 of the Central Goods and Services Tax Act, 2017 deals with the fine for failure to furnish statistics or information required under Section 151 of the CGST Act.
The provision is part of Chapter XIX – Offences and Penalties and is intended to ensure that a person who is legally required to provide information under Section 151 does not ignore that requirement without reasonable cause and does not deliberately provide information that the person knows to be false.
Under the current CGST Act, Section 124 provides for a fine of up to ₹10,000 for the specified failure or wilful furnishing of false information. Where the offence continues, an additional fine of up to ₹100 per day after the first day may apply, subject to a maximum overall limit of ₹25,000.
What Is Section 124 of the CGST Act?
Section 124 is titled “Fine for failure to furnish statistics.”
The section applies to a person who is required to furnish any information or return under Section 151.
There are two circumstances specifically covered:
- The person, without reasonable cause, fails to furnish the information or return required under Section 151.
- The person wilfully furnishes or causes to furnish information or a return that the person knows to be false.
In either situation, Section 124 provides for a fine. If the offence continues, an additional daily fine may apply, subject to the statutory maximum.
What Does Section 151 Have to Do With Section 124?
Section 124 cannot be properly understood without looking at Section 151.
The current Section 151 is titled “Power to call for information.”
Under Section 151, the Commissioner or an officer authorised by the Commissioner may, by an order, direct any person to furnish information relating to any matter dealt with in connection with the CGST Act.
The order can specify:
- the information required;
- the time within which it must be furnished;
- the form in which it must be furnished; and
- the manner in which it must be furnished.
Therefore, Section 151 creates the information-gathering power, while Section 124 provides a consequence for specified non-compliance with that requirement.
A simple way to understand the relationship is:
Section 151 → Power to call for information
Section 124 → Fine for specified failure or wilful false information
Who Can Be Covered by Section 124?
Section 124 is not limited only to registered taxpayers.
The wording refers to “any person” who is required to furnish information or a return under Section 151.
Therefore, the provision can potentially apply to any person who receives a valid requirement under Section 151 and falls within its scope.
Depending on the nature of the information required, this could include persons connected with transactions or activities relevant to GST administration.
The important point is that the person must first be required to furnish information or a return under Section 151.
Section 124(1)(a) – Failure Without Reasonable Cause
The first situation covered by Section 124 is where a person:
without reasonable cause fails to furnish such information or return as may be required under Section 151.
The phrase “without reasonable cause” is important.
Section 124 does not simply say that every delay or failure automatically attracts the fine.
The provision specifically addresses a failure without reasonable cause.
Therefore, the circumstances surrounding the failure can be relevant when considering Section 124.
What Is a Reasonable Cause?
Section 124 itself does not provide an exhaustive definition of the expression “reasonable cause.”
Therefore, the facts and circumstances of the particular case become important.
For example, a person may face circumstances that genuinely prevent timely submission of the required information.
The existence and adequacy of a claimed reasonable cause would depend on the circumstances and the applicable legal process.
A taxpayer or other person who receives a Section 151 direction should therefore not simply ignore it. If compliance within the specified time is genuinely not possible, the person should appropriately communicate the circumstances and seek any available additional time or clarification.
Example of Failure Without Reasonable Cause
Suppose the Commissioner issues an order under Section 151 requiring a person to furnish specified information within a particular period.
The person receives the order but does not provide the information and does not provide any reasonable explanation for the failure.
If the statutory conditions are satisfied, Section 124 may become applicable.
The potential fine is:
- up to ₹10,000 initially; and
- in case of a continuing offence, up to ₹100 for each day after the first day,
subject to the maximum limit of ₹25,000.
Section 124(1)(b) – Wilfully Furnishing False Information
The second situation is more specific.
Section 124 applies where a person:
wilfully furnishes or causes to furnish any information or return which he knows to be false.
There are therefore important elements in this provision:
- the information or return is false;
- the furnishing of that information is wilful; and
- the person knows that the information is false.
This is different from an ordinary accidental mistake.
Difference Between an Error and Wilfully False Information
A genuine clerical or factual mistake should not automatically be equated with the conduct described in Section 124.
The wording of Section 124(1)(b) specifically refers to information that the person knows to be false and nevertheless wilfully furnishes or causes to be furnished.
For example, if a person unintentionally enters an incorrect figure because of a genuine clerical mistake, the facts would need to be examined before treating the conduct as wilfully furnishing information known to be false.
On the other hand, deliberately providing information that the person knows is incorrect can fall within the specific language of Section 124.
Example of Wilfully False Information
Suppose a person receives a direction under Section 151 to provide information concerning certain GST-related transactions.
The person has accurate records showing the actual figures but deliberately submits different figures while knowing that those figures are false.
If the statutory conditions are established, Section 124(1)(b) may apply.
The provision is therefore concerned with the integrity of information supplied to the tax administration.
What Is the Maximum Fine Under Section 124?
The current Section 124 provides for:
| Situation | Maximum fine |
|---|---|
| Failure without reasonable cause / wilfully furnishing known false information | Up to ₹10,000 |
| Continuing offence | Additional amount up to ₹100 per day after the first day |
| Maximum limit for the continuing offence | ₹25,000 |
The statutory wording makes the ₹25,000 amount the maximum limit for the continuing offence.
It is therefore incorrect to calculate the daily amount indefinitely without applying the statutory maximum.
How Does the Continuing Offence Provision Work?
Section 124 provides an additional fine where the offence is a continuing offence.
The additional amount may extend to ₹100 for each day after the first day during which the offence continues.
However, the provision places an overall maximum limit of ₹25,000.
Simple Illustration
Suppose a person commits an offence covered by Section 124 and the offence continues for several days.
The law permits an additional amount of up to ₹100 for each day after the first day.
However, the total fine cannot exceed the maximum limit prescribed by Section 124.
Therefore, the daily component cannot be used to impose an unlimited amount.
Section 124 Is Not a GST Tax Demand
It is important to distinguish the fine under Section 124 from a demand for GST.
Section 124 is an offence-related fine for specified conduct concerning information or returns required under Section 151.
It does not itself determine:
- output tax liability;
- input tax credit;
- interest on delayed payment of tax;
- tax short-paid;
- erroneous refund; or
- tax payable on a particular supply.
The provision addresses compliance with an information requirement.
Section 124 and Section 151 – Key Difference
| Section 151 | Section 124 |
|---|---|
| Power to call for information | Fine for specified non-compliance |
| Commissioner or authorised officer may direct a person to furnish information | Applies where a person required to furnish information/return under Section 151 fails without reasonable cause or wilfully furnishes known false information |
| Specifies time, form and manner | Specifies fine |
| Information-gathering provision | Offence and penalty provision |
Section 151 is therefore the underlying information-gathering provision, while Section 124 deals with specified failures connected with that requirement.
Section 124 and Section 123 – Difference
Section 123 deals with a different situation.
Section 123 concerns a person required to furnish an information return under Section 150 who fails to furnish it within the period specified in the notice issued under Section 150(3).
The current Section 123 provides a penalty of ₹100 for each day during which the failure continues, subject to a maximum of ₹5,000.
Section 124, on the other hand, concerns information or returns required under Section 151.
The distinction can be summarised as follows:
| Basis | Section 123 | Section 124 |
|---|---|---|
| Related provision | Section 150 | Section 151 |
| Subject | Information return | Information or return required under Section 151 |
| Main issue | Failure to furnish information return after notice | Failure without reasonable cause or wilful furnishing of known false information |
| Maximum | ₹5,000 | ₹25,000 |
Section 124 and Section 125 – Difference
Section 125 is the general penalty provision.
It applies where a person contravenes a provision of the CGST Act or the rules made thereunder for which no penalty is separately provided in the Act.
The maximum penalty under Section 125 is ₹25,000.
Section 124 is different because it specifically deals with failure to furnish information or returns under Section 151 and wilful furnishing of information known to be false.
Therefore, where a specific provision such as Section 124 addresses the conduct, it should be examined before relying on the general penalty provision.
Section 124 and Section 126 – General Discipline Relating to Penalty
Section 126 contains general disciplines relating to penalties.
It provides, among other things, that no officer under the CGST Act shall impose a penalty for minor breaches of tax regulations or procedural requirements and, in particular, for an omission or mistake in documentation that is easily rectifiable and made without fraudulent intent or gross negligence.
Section 126 also provides that:
- penalty should depend on the facts and circumstances;
- the penalty should be commensurate with the degree and severity of the breach;
- no penalty should be imposed without an opportunity of being heard; and
- the order should specify the nature of the breach and the applicable legal provision.
These provisions are important when considering penalty-related provisions in Chapter XIX.
Does Section 126 Automatically Apply to Section 124?
Section 126(6) states that the provisions of Section 126 do not apply in cases where the penalty specified under the Act is either a fixed sum or expressed as a fixed percentage.
Section 124 uses the expression “fine” and provides a maximum amount rather than prescribing a fixed fine.
The application of Section 126 to a particular proceeding should therefore be considered in light of the exact statutory language and facts rather than assumed automatically.
The important practical point is that the statutory safeguards and procedural requirements applicable to the particular fine or penalty proceeding should be followed.
Section 124 and Opportunity of Hearing
Section 124 itself does not contain a separate detailed hearing procedure.
However, Section 126(3), where applicable, provides that no penalty shall be imposed on any person without giving an opportunity of being heard.
The specific procedural route for imposing and recovering the fine should therefore be considered along with the relevant provisions governing the proceeding.
A person facing action should be given the applicable opportunity to explain the circumstances and respond to the allegation.
Why Is Section 124 Important?
Section 124 supports the reliability of information collected for GST administration.
The GST system requires information from different persons and sources for:
- tax administration;
- compliance analysis;
- verification;
- policy and statistical purposes; and
- other matters connected with the GST law.
If a person is required to provide information under Section 151 but simply ignores the requirement without reasonable cause, the effectiveness of that information-gathering mechanism can be affected.
Similarly, knowingly providing false information can undermine the reliability of the information used by the tax administration.
Section 124 therefore provides a statutory consequence for the specific conduct described in the provision.
👉 Read More → Section 126 – General disciplines related to penalty
Information Required Under Section 151
The current Section 151 allows the Commissioner or authorised officer to direct any person to furnish information relating to any matter dealt with in connection with the CGST Act.
The direction can specify:
- what information must be provided;
- the deadline;
- the required form; and
- the required manner of furnishing the information.
This wording gives Section 151 a broad information-gathering scope, while Section 124 provides the consequence for the specific failures identified there.
Example – Business Information
Suppose a business receives a valid Section 151 order requiring certain information about its GST-related transactions.
The order specifies that the information must be provided electronically within a particular period.
If the business does not provide the information and has no reasonable cause for the failure, Section 124 may become relevant.
The business should not assume that an information request can simply be ignored because it does not directly demand payment of GST.
Example – Third-Party Information
Section 151 refers to any person, rather than only the registered taxpayer whose tax liability is being examined.
Therefore, depending on the information required, a person other than the taxpayer may also receive a direction under Section 151.
If such a person is required to provide information and the statutory conditions of Section 124 are satisfied, the fine provision can become relevant.
Example – False Information
Suppose a person is required to provide transaction information under Section 151.
The person has access to the correct records but deliberately alters the figures before furnishing them.
If it is established that the person wilfully furnished information that the person knew to be false, Section 124(1)(b) may apply.
This is different from an accidental data-entry error because the statutory provision specifically requires wilful furnishing of information known to be false.
Reasonable Cause and Compliance
The expression “without reasonable cause” means that the circumstances surrounding a failure can matter.
A person who cannot comply with a Section 151 direction within the specified period should consider whether there is a legitimate reason and whether the authority can be approached for an extension or clarification.
Section 151 itself provides that the order may specify the time, form and manner of furnishing information.
Accordingly, businesses should carefully read the Section 151 order rather than assuming that every information request has identical requirements.
Practical Compliance Steps After Receiving a Section 151 Order
A person receiving a Section 151 information direction should consider the following steps.
1. Read the Order Carefully
Identify exactly what information has been requested.
2. Check the Deadline
Note the precise date or period within which the information must be furnished.
3. Identify the Required Format
Section 151 permits the order to specify the form and manner of furnishing information.
4. Collect Supporting Records
Gather the invoices, books, statements, agreements or other records necessary to prepare an accurate response.
5. Verify the Information
Before submission, compare the response against the underlying records.
6. Do Not Deliberately Alter Information
Providing information known to be false can create a separate issue under Section 124(1)(b).
7. Address Genuine Difficulties
If compliance is genuinely difficult, document the reason and communicate appropriately with the authority.
8. Keep Proof of Submission
Maintain evidence showing when and how the information was furnished.
Section 124 and False Returns
The wording of Section 124 refers to information or return required under Section 151.
Therefore, the provision is not limited to ordinary statistical information in the narrow sense.
If a return is specifically required under Section 151 and the conditions of Section 124 are satisfied, the provision can apply.
The exact nature of the required return and the direction issued under Section 151 should be examined in the particular case.
Does Section 124 Apply Automatically When Information Is Late?
No.
The provision specifically refers to failure “without reasonable cause.”
Therefore, the mere fact that information was not furnished on time does not mean that the statutory conditions are automatically satisfied without examining the circumstances.
Similarly, for false information under Section 124(1)(b), the provision specifically refers to information that the person knows to be false and furnishes or causes to be furnished wilfully.
Is Section 124 a Criminal Offence?
Section 124 is located in Chapter XIX – Offences and Penalties, but its wording provides a fine for the specified conduct.
It should be distinguished from the separate prosecution provisions under Section 132, which deal with specified offences and can involve imprisonment and fine.
Section 124 itself does not prescribe imprisonment. It prescribes the fine described in the section.
Section 124 and Section 132 – Difference
Section 132 deals with punishment for specified serious GST offences.
Depending on the offence and the amount involved, Section 132 can provide for imprisonment and fine.
Section 124 is much narrower. It concerns:
- failure without reasonable cause to furnish information or a return required under Section 151; or
- wilfully furnishing or causing to furnish information or a return known to be false.
The maximum fine under Section 124 is ₹25,000 where the continuing-offence provision reaches its statutory maximum.
Section 124 – Important Legal Distinctions
It is useful to keep the following distinctions in mind:
Section 151 vs Section 124
Section 151 provides the power to call for information; Section 124 provides the fine for specified non-compliance.
Section 123 vs Section 124
Section 123 concerns an information return under Section 150; Section 124 concerns information or return required under Section 151.
Section 124 vs Section 125
Section 124 is a specific provision; Section 125 is the general penalty provision where no separate penalty is provided.
Section 124 vs Section 126
Section 124 identifies the specific conduct and fine; Section 126 lays down general disciplines relating to penalties, subject to its own scope.
Section 124 vs Section 132
Section 124 concerns specified information-related non-compliance; Section 132 deals with specified serious GST offences and provides for criminal punishment.
Current Position of Section 124
The current consolidated CGST Act published on India Code is stated to be as on 11 June 2026 and includes amendments through the Finance Act, 2026. In that current text, Section 124 continues to provide the fine structure of up to ₹10,000, with an additional amount of up to ₹100 per day after the first day for a continuing offence, subject to a maximum limit of ₹25,000.
The current Act also shows that Section 151 was substituted with effect from 1 January 2022. Its present wording gives the Commissioner or authorised officer power, by order, to direct any person to furnish information relating to any matter dealt with in connection with the CGST Act within the specified time, form and manner.
This is important because older GST materials may describe Section 151 using its earlier wording concerning collection of statistics. When preparing current content, Section 151 should be read in its present form.
Key Takeaways of Section 124
The important points of Section 124 are:
- Section 124 is titled “Fine for failure to furnish statistics.”
- It is part of Chapter XIX of the CGST Act dealing with offences and penalties.
- It is linked to information or returns required under Section 151.
- Section 151 currently empowers the Commissioner or authorised officer to direct any person to furnish specified information.
- The information can relate to any matter dealt with in connection with the CGST Act.
- The Section 151 order can specify the time, form and manner in which information must be furnished.
- Section 124 applies where a person, without reasonable cause, fails to furnish the required information or return.
- Section 124 also applies where a person wilfully furnishes or causes to furnish information or a return that the person knows to be false.
- The initial fine may extend to ₹10,000.
- For a continuing offence, an additional fine may extend to ₹100 for each day after the first day.
- The maximum limit for the continuing offence is ₹25,000.
- Section 124 does not itself create a GST tax demand.
- It should be distinguished from Section 123, which concerns information returns under Section 150.
- It should also be distinguished from Section 125, which provides a general penalty.
- Section 126 contains general disciplines relating to penalties.
- Section 124 itself does not prescribe imprisonment.
- Section 132 deals separately with specified serious GST offences and criminal punishment.
- A person receiving a Section 151 direction should carefully comply with the specified time, form and manner.
- A genuine difficulty in complying should be appropriately documented and communicated rather than simply ignored.
- Information furnished to the GST authorities should be accurate and supported by relevant records.
👉 Read More → Section 124 – Fine for failure to furnish statistics
Conclusion
Section 124 of the CGST Act provides a specific fine for certain failures relating to information or returns required under Section 151.
The provision covers two principal situations. First, a person required to furnish information or a return under Section 151 fails to do so without reasonable cause. Second, a person wilfully furnishes or causes to furnish information or a return that the person knows to be false.
The fine may extend to ₹10,000. Where the offence is continuing, an additional fine of up to ₹100 for each day after the first day may apply, subject to the maximum statutory limit of ₹25,000.
Section 124 should be understood together with the current Section 151. Section 151 now provides that the Commissioner or an authorised officer may, by order, direct any person to furnish information relating to any matter dealt with in connection with the CGST Act, within the time, form and manner specified in the order.
The practical importance of Section 124 is therefore straightforward: when a person receives a valid information requirement under Section 151, the person should not ignore it. The requested information should be furnished accurately and within the specified requirements. If genuine circumstances make timely compliance difficult, those circumstances should be appropriately communicated and documented.
Section 124 is also different from the general penalty provisions and from the criminal offences under Section 132. Its specific focus is the furnishing of information or returns required under Section 151 and the consequences of specified failures or wilful false reporting.
For GST compliance, businesses and other persons who may receive information requests should therefore maintain reliable records, verify information before submission and preserve evidence of compliance.
Based on Google's Helpful Content System, this article emphasizes user value, transparency, and accuracy. It incorporates principles of E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness).
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