General penalty
Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.
Section 125 of the Central Goods and Services Tax Act, 2017 deals with general penalty. Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees. The Act was enacted on 12 Apr 2017.
Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.
Section 125, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 3
- s. 74 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts
- s. 74A Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
- s. 128 Power to waive penalty or fee or both
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Dinesh Kumar Raghav v. Commissioner of Central Goods and Service Tax
Court's Decision & Legal Precedent
DATE VERIFIED Final Order 23.04.2025 (order-1.pdf): DB held s.122(1) targets a taxable person, but s.122(1A) uses “any person” who retains benefit of specified fake-invoice/ITC transactions — directors/managers can face 122(1A) penalty; factual benefit/control goes to appeal under s.107 (not decided afresh in writ).
On this section: s.125 general penalty was imposed on directors alongside 122(1A); writ court channelled challenge to appeal rather than wiping s.125 liability at threshold.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… 50 of the CGST Act, 2017; > (iii) I drop the demand of Interest of Rs.7,51,620/- (Rs.2,43,116/-+Rs.5,08,504/- pertaining to the period from July-2017 to Mar-2018 and April-2018 to June-2019 respectively); > (iv) I impose Penalty of Rs.25,000/- (Rs. Twenty Five Thousand only) on the Taxable Person under Section 125 of the Central Goods and Services Tax Act, 2017; > (v) I do not impose penalty under Section 73(11) and Section 122(1) (iii) of the Central Goods and Services Tax Act, 2017;" [2024:RJ-JD:36138-DB] (3 of 4) [CW-14184/2024] 3. Mr. Sandeep Bishnoi, the learned counsel for the …
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… 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct; f) Error in one or two digits/characters of the vehicle number." 3.5 It was pointed out that paragraph 6 thereof, provides that in case of the above situations, penalty to the tune of Rs. 500/ each, under section 125 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act") and the respective State GST Act should be imposed (Rs.1000/- under the Integrated Goods and Services Tax Act, 2017) in FORM GST DRC-07 for every consignment. It was submitted that having regard to the guidelines laid down in …
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… 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct; f) Error in one or two digits/characters of the vehicle number." 3.5 It was pointed out that paragraph 6 thereof, provides that in case of the above situations, penalty to the tune of Rs. 500/ each, under section 125 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act") and the respective State GST Act should be imposed (Rs.1000/- under the Integrated Goods and Services Tax Act, 2017) in FORM GST DRC-07 for every consignment. It was submitted that having regard to the guidelines laid down in …
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 4 instruments name this provision in its title or its text without being made under it.
Questions about Section 125
What have the courts held on Section 125 of the Central Goods and Services Tax Act?
Dinesh Kumar Raghav v. Commissioner of Central Goods and Service Tax (23 Apr 2025) is the leading judgment on this section among those set out below: s.125 general penalty was imposed on directors alongside 122(1A); writ court channelled challenge to appeal rather than wiping s.125 liability at threshold.
How do I find court cases under Section 125 of the Central Goods and Services Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 125, section 125 CGST Act, section 125 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Dinesh Kumar Raghav v. Commissioner of Central Goods and Service Tax (23 Apr 2025).
What should I read with Section 125 of the Central Goods and Services Tax Act, and has it changed?
3 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently Notification No. 49/2020 -Central Tax dated 24.06.2020 (2020).
When was Section 125 of the Central Goods and Services Tax Act enacted?
Section 125 of the Central Goods and Services Tax Act, cited as CGST Act 125, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5109 words
- 142. Miscellaneous transitional provisions1966 words
- 140. Transitional arrangements for input tax credit1883 words
- 54. Refund of tax1858 words
- 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc1647 words
- 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward1299 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.