What is Section 122A of the GST Act?

Section 122A of the GST Act pertains specifically to penalties for failing to furnish information returns as required under GST law. Introduced to curb non-compliance and promote timely submission of required information, this section imposes monetary penalties on those who fail to adhere to the specified timelines for filing information returns.

Key Provisions of Section 122A

Scope of Applicability

Section 122A applies to any person or entity mandated to submit an information return under the GST provisions. An information return is essentially a document or statement required to be furnished to the tax authorities, containing details that aid in the administration of GST.

Penalty Structure

The penalty for failing to furnish the information return within the prescribed time frame is set at one hundred rupees for each day of delay, with a maximum limit of five thousand rupees. This means that the longer the delay, the higher the penalty, up to the capped amount.

Objective

The primary objective of this section is to ensure that taxpayers submit their information returns on time, thereby contributing to the accuracy and completeness of data available to the GST authorities.

Conclusion

Section 122A of the GST Act plays a vital role in ensuring the integrity and efficiency of the GST system in India. By imposing penalties for delays in furnishing information returns, it underscores the importance of compliance and transparency.

For taxpayers, understanding and adhering to the requirements of Section 122A is crucial to avoid penalties and contribute to the smooth functioning of the broader tax system. As the GST regime evolves, staying informed and compliant remains the key to successfully navigating its complexities.

At Pitchers Global, we aim to empower the business with proper registration, compliance and various financial solutions that drive growth and success.

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