General Penalty for Late Returns Upheld Even Without Section 47 Late Fee Imposition

General Penalty for Late Returns Upheld Even Without Section 47 Late Fee Imposition

Issue

Whether the imposition of a general penalty for late filing of GST returns is valid and sustainable even when the specific late fee prescribed under Section 47 of the GST Act has not been levied.

Facts

• Assessment Period: The dispute pertains to the tax period 2019-2020.

• Default: The assessee failed to file their GST returns within the prescribed due dates.

• Penalty Imposed: The tax authorities imposed a general penalty of Rs. 50,000/- (Rs. 25,000/- under CGST and Rs. 25,000/- under SGST) for the non-compliance.

• Observation: It was noted that despite the delay, no specific late fee under Section 47 of the respective GST enactments had been imposed on the assessee.

• Legal Challenge: The assessee filed a writ petition on 23-10-2025 challenging the imposition of this general penalty.

Decision

• Non-Interference: The Court held that the impugned order imposing a general penalty did not suffer from any infirmity requiring judicial interference.

• Penalty Sustained: The fact that a specific late fee under Section 47 was not imposed did not invalidate the general penalty levied for the established default of late filing.

• Outcome: The writ petition was dismissed, and the penalty order was upheld. [In favour of revenue]

Key Takeaways

• General Penalty Scope: Authorities may impose a general penalty for procedural lapses (like late filing) under the GST Act, and this can stand independently even if the specific “late fee” under Section 47 is not separately charged in the order.

• Compliance is Mandatory: The absence of a specific late fee levy does not absolve the taxpayer of liability for non-compliance; the general penalty provisions can still be invoked to penalize the delay.