Section 150 of the Central Goods and Services Tax Act, 2017 deals with the obligation to furnish an information return to the GST authorities.
The provision is designed to enable the Government to obtain relevant information from specified persons and organisations that maintain records containing details connected with taxable persons, transactions, tax payments, bank accounts, electricity consumption, purchases, sales, exchanges of goods or property and other specified matters.
Section 150 is different from the regular GST return provisions applicable to registered taxpayers. It does not generally require every GST-registered person to file an information return. Instead, it places an information-reporting obligation on specified persons who maintain particular types of records and are covered by the section.
The provision also establishes a mechanism for correcting defective information returns and for requiring a person who has failed to furnish the information return to submit it within a specified period. The section should also be read with Section 123, which provides a penalty for failure to furnish an information return after a notice under Section 150(3).
What Is Section 150 of the CGST Act?
Section 150 is titled “Obligation to furnish information return.”
It contains three main sub-sections:
- Section 150(1) identifies the persons who may be required to furnish an information return and the types of records or information covered.
- Section 150(2) provides a mechanism for correcting a defective information return.
- Section 150(3) allows the authorised authority to issue a notice where a required information return has not been furnished.
The purpose is to create an information-gathering mechanism that helps the GST administration obtain relevant transaction and financial information from persons or organisations that maintain such records.
Why Is Section 150 Important?
GST administration depends not only on returns filed by registered taxpayers but also on information available from other sources.
A transaction may leave records with:
- a bank or financial institution;
- a government authority;
- a recognised stock exchange;
- a depository;
- an electricity-related authority;
- a property-related authority;
- GSTN;
- a person holding a Unique Identity Number; or
- another person specifically notified by the Government.
Section 150 provides the statutory framework under which specified information can be reported to the GST authorities.
This can help the tax administration compare information received from different sources with GST returns and other records.
Who Is Required to Furnish an Information Return?
Section 150(1) covers a specified category of persons who are responsible for maintaining certain records.
The section includes persons such as:
- A person responsible for maintaining records of registration.
- A person responsible for maintaining statements of accounts.
- A person maintaining periodic returns or documents containing tax-payment information.
- A person maintaining transaction records relating to goods or services.
- A person maintaining records connected with bank accounts.
- A person maintaining electricity-consumption records.
- A person maintaining records of purchase, sale or exchange of goods.
- A person maintaining records concerning property or rights or interests in property.
- Persons specifically identified in Section 150(1).
- Any other person who may be specified by the Government on the recommendations of the GST Council.
The important point is that Section 150 is connected with the nature of records maintained by the person, rather than simply whether that person is registered under GST.
Specific Persons Mentioned in Section 150(1)
Section 150 specifically refers to several persons and organisations.
These include the following.
Collector Under the Land Acquisition Law
The section refers to the Collector mentioned in clause (c) of Section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Such a person may hold records relevant to transactions involving property or rights and interests in property.
Recognised Stock Exchange
Section 150 refers to the recognised stock exchange defined under the Securities Contracts (Regulation) Act, 1956.
A recognised stock exchange maintains information concerning transactions carried out through the exchange.
Depository
The provision also refers to a depository as defined under the Depositories Act, 1996.
Depositories maintain records relating to securities and associated transactions.
Officer of the Reserve Bank of India
Section 150 also specifically mentions an officer of the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934.
This reflects the importance of financial and banking-related information for the tax administration.
Goods and Services Tax Network
GSTN is specifically included in Section 150.
GSTN is the company responsible for operating the technological infrastructure supporting the GST system.
Unique Identity Number Holder
The provision also refers to a person who has been granted a Unique Identity Number (UIN) under Section 25(9).
UIN is relevant to specified entities covered by the GST framework.
Other Persons Specified by Government
Section 150(1) also contains a wider enabling provision.
The Government may specify other persons, on the recommendations of the GST Council, who will be required to furnish an information return.
This allows the information-reporting framework to cover additional categories when required.
What Is an Information Return?
An information return is a return containing specified information relevant to the GST administration.
It is different from a normal GST tax return such as GSTR-1 or GSTR-3B.
A normal GST return generally relates to the taxpayer’s own GST obligations, such as:
- outward supplies;
- inward supplies;
- input tax credit;
- tax payable; and
- tax paid.
An information return under Section 150 is instead intended to provide information maintained by a person or organisation concerning specified registrations, accounts, transactions or other relevant records.
Therefore:
GST return → Primarily reports the taxpayer’s own GST-related particulars
Information return → Provides specified information maintained by a covered person or organisation
What Types of Information Can Be Covered?
Section 150(1) covers information connected with several types of records.
These include records relating to:
- registration;
- statements of accounts;
- periodic returns;
- documents containing details of tax payments;
- transactions involving goods;
- transactions involving services;
- bank accounts;
- electricity consumption;
- purchase of goods;
- sale of goods;
- exchange of goods;
- purchase or sale of property;
- exchange of property; and
- rights or interests in property.
The actual information required depends on the applicable legal requirement and the prescribed form, manner, period and authority.
Section 150 Is Not a General Return Requirement for Every Taxpayer
One of the most important points is that Section 150 does not mean every registered taxpayer has to file an information return.
The provision specifically identifies persons who maintain the relevant records and provides for information returns from those persons.
For example, an ordinary GST-registered business filing its regular GST returns does not become an information-return filer merely because it is registered under GST.
The obligation under Section 150 depends on whether the person falls within the category covered by the provision and the applicable requirements.
Section 150(1) – Form, Manner and Authority
Section 150(1) provides that the information return must be furnished:
- for the specified period;
- within the prescribed time;
- in the prescribed form and manner; and
- to the prescribed authority or agency.
Therefore, Section 150 establishes the legal obligation, while the applicable rules or prescribed procedures determine the operational details.
The section itself does not provide one universal filing date applicable to every possible information return.
The relevant period and time limit depend on the applicable requirement.
Section 150(2) – Defective Information Return
Section 150(2) deals with situations where the Commissioner or an authorised officer considers that the information return furnished by a person is defective.
In such a case, the officer may intimate the defect to the person who furnished the information return.
The person must then be given an opportunity to rectify the defect.
The normal statutory period provided in Section 150(2) is 30 days from the date of intimation.
The authority may also allow a further period where an application for extension is made and the authority permits additional time.
What Does a Defective Information Return Mean?
A defective information return may contain information that does not satisfy the applicable requirements.
For example, the information may contain:
- incomplete particulars;
- inconsistent information;
- incorrect information;
- missing required fields; or
- another defect that prevents the return from being properly used.
The exact nature of a defect depends on the information required under the applicable provision and prescribed procedure.
The taxpayer or information provider should therefore carefully review the defect communicated by the authorised officer and make the necessary correction.
30-Day Rectification Period
Section 150(2) provides a basic period of 30 days from the date of intimation to rectify the defect.
The person may also apply for additional time.
If the authority allows further time, the person must rectify the defect within the extended period.
This provides an opportunity to correct the information rather than immediately treating the return as invalid.
What Happens If the Defect Is Not Rectified?
If the person does not rectify the defect within:
- the initial 30-day period; or
- the further period allowed by the authority,
the information return is treated as not furnished.
Section 150(2) expressly provides this consequence notwithstanding anything contained in other provisions of the CGST Act.
This is important because simply submitting an information return is not necessarily enough.
If the return is defective and the defect is not corrected within the permitted period, it can be treated as though it had not been furnished.
Section 150(3) – Failure to Furnish Information Return
Section 150(3) deals with a person who is required to furnish an information return but has not furnished it within the time specified under:
- Section 150(1); or
- Section 150(2).
In such a situation, the authorised authority may serve a notice requiring the person to furnish the information return.
The notice can require the information return to be furnished within a period not exceeding 90 days from the date of service of the notice.
Importance of the 90-Day Period
The 90-day period under Section 150(3) is a maximum period that may be specified through the notice.
It is not necessarily a universal 90-day filing deadline applicable from the original due date.
The statutory sequence is:
Original obligation → Failure to furnish → Notice under Section 150(3) → Time specified in notice, not exceeding 90 days → Information return to be furnished
Therefore, a person should not wait for a notice before complying with an original information-return obligation.
Section 150 and Section 123 – Penalty
Section 123 of the CGST Act is directly connected with Section 150.
It provides a penalty where a person required to furnish an information return under Section 150 fails to do so within the period specified in the notice issued under Section 150(3).
The penalty is:
₹100 for each day of continuing failure
subject to a maximum of:
₹5,000.
Therefore, Section 150 creates the information-reporting obligation, while Section 123 provides a specific consequence for failure to comply after the statutory notice.
Example of Section 123 Penalty
Suppose a person is required to furnish an information return.
The person fails to furnish it within the applicable time.
The authorised authority then issues a notice under Section 150(3), requiring the return within a specified period.
If the person still fails to furnish the information return within the period specified in that notice, Section 123 may apply.
The penalty can be calculated at ₹100 per day for the continuing failure, subject to the statutory maximum of ₹5,000.
Section 150 and Section 151
Section 150 should be distinguished from Section 151 of the CGST Act.
Section 150
Section 150 deals with the obligation to furnish an information return by specified persons maintaining specified records.
Section 151
Section 151 deals with the power to collect statistics.
Under Section 151, the Commissioner may, by notification, direct that statistics relating to matters dealt with by or connected with the CGST Act may be collected.
The Commissioner or an authorised person may then call upon concerned persons to furnish the required information or returns in the prescribed form and manner.
Therefore, although both provisions involve information collection, their statutory purposes are different.
Section 150 and Section 152
Section 152 deals with restrictions concerning the use and publication of information supplied for the purposes of Section 150 or Section 151.
This is an important protection because information returns may contain commercially sensitive or personally identifiable information.
Section 152 restricts publication of information from an individual return in a manner that enables the particulars to be identified with a particular person without the required consent, subject to the statutory provisions and exceptions.
Confidentiality of Information Furnished Under Section 150
Information collected under Section 150 is not intended to become unrestricted public information.
The CGST Act contains provisions governing the disclosure and use of information.
Section 152 specifically deals with information from individual returns furnished for Sections 150 and 151.
The statutory framework therefore balances:
- information requirements of the tax administration; and
- restrictions on disclosure of individual information.
Section 150 and GST Data Matching
One practical purpose of information returns is to provide the GST administration with information that can be compared with information already available through GST returns and other records.
For example, transaction information from a covered source may be useful in identifying differences between:
- reported turnover and transaction records;
- property transactions and declared business activities;
- financial information and GST declarations; or
- other records maintained by the tax administration.
However, the existence of information from another source does not by itself establish a tax liability. Any further action must follow the applicable provisions and procedures of the GST law.
Section 150 and Bank Account Information
Section 150 expressly includes transactions related to a bank account within the categories of records covered by the provision.
This reflects the broader objective of enabling the tax administration to obtain relevant financial information from persons who are responsible for maintaining such records, where the statutory requirements apply.
The section itself should not be interpreted as creating an unrestricted power to obtain every bank transaction of every person. The information must fall within the statutory framework and applicable requirements of Section 150.
Section 150 and Electricity Consumption
Section 150 also refers to records concerning consumption of electricity.
Electricity consumption can sometimes provide information relevant to understanding the operations of a business or other activity.
For example, unusually high electricity consumption may be relevant to understanding whether an industrial or commercial activity is being carried out, depending on the circumstances.
Again, the inclusion of electricity records in Section 150 does not by itself establish that tax is payable. The information is part of the broader information-gathering framework.
Section 150 and Property Transactions
The provision specifically includes records relating to:
- purchase;
- sale;
- exchange of goods or property; and
- rights or interests in property.
Property-related information can therefore form part of the information-return framework where the person maintaining the relevant records falls within Section 150.
Such information may assist the GST administration in identifying transactions or activities requiring further examination under the GST law.
Section 150 and Stock Exchange Information
Recognised stock exchanges are specifically mentioned in Section 150.
Stock exchange records can contain information relating to transactions in securities and other financial activities.
The inclusion of recognised stock exchanges demonstrates that Section 150 is designed to access information from a variety of information-holding institutions rather than relying only on GST returns.
Section 150 and Depositories
A depository is also specifically identified under Section 150.
Depositories maintain records concerning securities held and related transactions.
Where the statutory information-return requirements apply, such records can form part of the information provided to the GST administration.
Section 150 and GSTN
GSTN is expressly mentioned in Section 150.
GSTN operates the technological infrastructure associated with the GST system.
Its inclusion reflects the importance of the GST system’s own registration and transaction information in the broader information framework.
👉 Read More → Section 152 – Bar on disclosure of information
Section 150 and Unique Identity Number Holders
Section 150 also includes a person to whom a Unique Identity Number under Section 25(9) has been granted.
UIN is relevant to specified persons and organisations covered by the GST framework.
The inclusion of UIN holders ensures that the information-return provision can apply to the specified records maintained by such persons where the statutory conditions are satisfied.
Information Return vs GST Return
The following comparison makes the distinction clearer:
| Basis | Information Return under Section 150 | Regular GST Return |
|---|---|---|
| Main purpose | Provide specified information to GST authorities | Report GST-related tax and transaction particulars |
| Main provision | Section 150 | Sections 37, 39, 44 and other applicable provisions |
| Who files | Specified persons covered by Section 150 | Persons required under the relevant GST provisions |
| Nature | Information reporting | Tax compliance reporting |
| Tax payment | Not itself a tax-payment mechanism | May accompany or relate to tax payment |
| Defective filing | Section 150(2) provides correction mechanism | Governed by relevant return provisions |
| Specific failure penalty | Section 123 | Relevant late fee/penalty provisions |
Section 150 vs Section 52
Section 52 deals with collection of tax at source by electronic commerce operators.
An electronic commerce operator covered by Section 52 has specific TCS obligations and must furnish prescribed statements.
Section 150 is different.
Section 150 concerns information returns from specified information holders and is not itself a TCS mechanism.
Therefore:
Section 52 → GST TCS
Section 150 → Information reporting
Section 150 vs Section 70
Section 70 gives a proper officer the power to summon a person to give evidence or produce documents in an inquiry.
Section 150 is different because it establishes an information-return obligation for specified persons maintaining particular records.
A Section 150 information return is therefore part of a structured information-reporting framework, while a Section 70 summons is connected with a specific inquiry.
Section 150 vs Section 151
| Feature | Section 150 | Section 151 |
|---|---|---|
| Main purpose | Information return | Collection of statistics |
| Authority | Statutory information-return framework | Commissioner through notification |
| Information source | Specified record-holders | Persons called upon to provide statistics |
| Failure consequence | Section 123 may apply after Section 150(3) notice | Section 124 may apply for specified failures |
| Main focus | Transaction/account/property-related information | Statistical information |
Practical Example – Bank-Related Information
Suppose a person covered by Section 150 is responsible for maintaining specified records concerning bank accounts.
The Government’s prescribed information-return framework requires certain information for a specified period.
The person must furnish the information return in the prescribed form and manner.
If the information return is defective, the authority may intimate the defect and provide 30 days for rectification, subject to any further period allowed.
If the required information return is not furnished, a notice under Section 150(3) may follow.
Practical Example – Property Information
Suppose a covered authority maintains records concerning transactions involving property.
Where the applicable Section 150 requirement covers that information, the authority must furnish the information return for the specified period and within the prescribed time.
If the return contains a defect, the defect can be communicated for rectification.
If the person fails to furnish the return, Section 150(3) provides a notice mechanism.
Practical Example – Defective Return
Suppose a covered person submits an information return but certain required information is incomplete.
The Commissioner or authorised officer considers the return defective and communicates the defect.
The person normally gets 30 days from the date of intimation to rectify the defect.
If the person does not rectify it within that period or within the further period allowed, the information return is treated as not furnished.
Practical Example – Failure After Notice
Suppose a person is required to furnish an information return but does not furnish it.
The authorised authority serves a notice under Section 150(3).
The notice requires the person to furnish the return within a specified period of 60 days.
Because the statutory maximum is 90 days, the notice can specify a 60-day period.
If the person fails to furnish the return within that period, the penalty mechanism under Section 123 may become applicable.
Importance of Accurate Information
An information return should not be treated as a routine formality.
The information may be used by the GST administration as part of its broader compliance and verification processes.
A person responsible for furnishing the information should therefore:
- identify the applicable reporting requirement;
- understand the period covered;
- collect the relevant records;
- verify the information;
- submit it in the prescribed manner;
- retain supporting records; and
- promptly correct any defect communicated by the authority.
What Happens If the Information Return Is Defective?
The statutory process can be summarised as:
Information return furnished
↓
Commissioner/authorised officer identifies defect
↓
Defect communicated to person
↓
30 days to rectify
↓
Further time may be allowed on application
↓
If defect is not rectified → return treated as not furnished
This mechanism is specifically provided under Section 150(2).
What Happens If the Information Return Is Not Furnished?
The statutory sequence is:
Information return becomes due
↓
Person fails to furnish it
↓
Authority may issue notice under Section 150(3)
↓
Notice provides a period not exceeding 90 days
↓
Person must furnish the information return
↓
Failure after notice may attract Section 123 penalty
This sequence is important because Section 123 specifically refers to failure to furnish the information return within the period specified in the Section 150(3) notice.
Penalty Under Section 123
Section 123 provides a specific penalty for failure to furnish an information return required under Section 150 when the person fails to comply within the period specified in the notice under Section 150(3).
The penalty is:
₹100 per day
subject to a maximum of:
₹5,000.
The penalty is therefore relatively limited in amount, but the reporting obligation itself remains important.
Section 150 and Section 124
Section 124 deals with a different type of information obligation under Section 151.
Where a person required to furnish information or return under Section 151:
- without reasonable cause fails to furnish the required information or return; or
- wilfully furnishes or causes to be furnished information or a return known to be false,
Section 124 provides for a fine that may extend to ₹10,000, with an additional daily fine for a continuing offence subject to the statutory maximum of ₹25,000.
Therefore, Section 123 should not be confused with Section 124.
Section 150 and Confidentiality
Information received under Section 150 can contain sensitive information.
The CGST Act therefore includes provisions restricting disclosure of individual information.
Section 152 specifically deals with information supplied for the purposes of Sections 150 and 151 and places restrictions on publication that would identify the particulars as relating to a particular person, subject to the statutory framework.
This means that the information-reporting system should be understood together with the confidentiality provisions of the Act.
Practical Compliance Checklist
A person or organisation potentially covered by Section 150 should consider the following checklist:
1. Identify Whether Section 150 Applies
Determine whether the person falls within one of the categories covered by Section 150(1) or has been specifically notified.
2. Identify the Records Covered
Determine which records are relevant, such as:
- accounts;
- tax-payment records;
- transaction records;
- bank-related records;
- electricity consumption records; or
- property-related records.
3. Check the Reporting Period
Identify the period for which information must be furnished.
4. Check the Prescribed Form and Manner
The information return must be submitted in the prescribed form and manner to the prescribed authority or agency.
5. Verify the Information
Check the data before submission.
6. Respond to Defect Intimation
If a defect is communicated, rectify it within the statutory 30-day period or within the additional period allowed.
7. Respond to Section 150(3) Notice
If a notice is received for failure to furnish the information return, comply within the period specified in the notice.
8. Maintain Supporting Records
Keep appropriate records supporting the information furnished.
9. Monitor Compliance
Do not assume that filing one information return removes future reporting obligations.
The relevant reporting requirements should be reviewed for each applicable period.
Key Takeaways of Section 150
Section 150 can be summarised through the following points:
- Section 150 deals with the obligation to furnish information return.
- It is part of the GST administration and compliance framework.
- It applies to specified persons responsible for maintaining specified records.
- The section covers records relating to registration, accounts and tax-payment information.
- It also covers specified transaction records.
- Bank-account-related records are specifically mentioned.
- Electricity-consumption records are specifically mentioned.
- Purchase, sale and exchange of goods or property are covered.
- Rights or interests in property are also covered.
- Recognised stock exchanges are specifically mentioned.
- Depositories are specifically mentioned.
- Officers of the Reserve Bank of India are specifically mentioned.
- GSTN is specifically mentioned.
- UIN holders are specifically mentioned.
- The Government can specify additional persons on the recommendations of the GST Council.
- The information return must be furnished for the specified period and within the prescribed time, form and manner.
- A defective information return can be required to be corrected.
- Section 150(2) normally provides 30 days for rectification after defect intimation.
- Further time may be allowed on application.
- If the defect is not rectified within the permitted period, the information return is treated as not furnished.
- Section 150(3) allows a notice requiring a missing information return to be furnished within a period not exceeding 90 days from service of the notice.
- Section 123 provides a penalty for failure to furnish the information return within the period specified in the Section 150(3) notice.
- The Section 123 penalty is ₹100 per day, subject to a maximum of ₹5,000.
- Section 150 is different from the normal GST return provisions.
- Section 150 is also different from Section 151, which concerns collection of statistics.
- Information supplied under Section 150 is subject to statutory confidentiality and disclosure provisions.
👉 Read More → Section 150 – Obligation to furnish information return
Conclusion
Section 150 of the CGST Act creates an important information-reporting mechanism for GST administration. Instead of relying only on information contained in GST returns, the provision enables the Government to obtain specified information from persons and organisations that maintain relevant records.
The section covers a broad range of information sources, including records relating to registrations, accounts, tax payments, transactions involving goods and services, bank accounts, electricity consumption, purchases and sales, property transactions and rights or interests in property. It specifically identifies institutions such as recognised stock exchanges, depositories, RBI officers, GSTN and UIN holders, while also allowing the Government to specify additional persons on the recommendations of the GST Council.
Section 150 also establishes a clear mechanism for defective or missing information returns. Where a return is defective, the person is given an opportunity to rectify the defect, normally within 30 days. If the defect remains uncorrected, the information return is treated as not furnished. Where a required return has not been furnished, the authorised authority can issue a notice requiring the return to be furnished within a period not exceeding 90 days.
The consequences of non-compliance are addressed separately through Section 123. A person who fails to furnish the required information return within the period specified in the Section 150(3) notice may be subject to a penalty of ₹100 per day, subject to a maximum of ₹5,000.
Section 150 should also be read together with the confidentiality provisions applicable to information returns and with Section 151, which deals with the collection of statistics. The overall framework is intended to improve the availability of reliable information to the GST administration while maintaining statutory controls over the use and disclosure of individual information.
For persons and organisations covered by Section 150, the practical requirement is to identify the applicable information-reporting obligation, maintain accurate records, furnish the required information in the prescribed manner and respond promptly if a defect or non-filing notice is received.
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