Section 124
What does this section say?
Section 124 empowers the Government to collect statistical information relating to GST, trade, industry, and economic activities for policy formulation and administrative purposes. From time to time, taxpayers and other persons may be required to provide statistical data, records, or information in the manner prescribed by the Government. Such information is generally used for research, analysis, planning, and improving the effectiveness of GST administration.
If any person who is required to furnish statistical information fails to do so without reasonable cause, or knowingly provides false, incomplete, or misleading information, a penalty may be imposed under this section. The law recognizes that reliable statistical information is essential for evaluating tax policies, understanding economic trends, and making informed decisions regarding revenue administration.
The section also discourages deliberate obstruction of data collection activities undertaken by authorized officers. Since statistical surveys and data collection exercises are conducted for broader public and administrative purposes, cooperation from taxpayers and other stakeholders is necessary. Non-compliance may lead to penal consequences as prescribed under the Act.
The objective of Section 124 is to ensure that the Government receives accurate and reliable information whenever statistical data is sought under lawful authority.
Fine Structure
|
Particulars |
Fine |
|
Initial Fine |
Up to ₹10,000 |
|
Continuing Offence |
Up to ₹100 per day after the first day of default |
|
Maximum Aggregate Fine |
₹25,000 |
Practical Categorization
|
Nature of Default |
Fine |
|
Non-submission of statistics/information |
Up to ₹10,000 |
|
Submission of false statistics/information |
Up to ₹10,000 |
|
Continuing default after first day |
Additional ₹100 per day |
|
Maximum total liability |
₹25,000 |
Example
Suppose the Commissioner notifies collection of statistical data relating to a specific industry under Section 151. A company is required to furnish the prescribed data but fails to submit it despite being obligated to do so. The company may be fined up to ₹10,000. If the default continues, an additional fine of up to ₹100 per day can be imposed, subject to a maximum overall limit of ₹25,000.
Key Points
- Relates to collection of statistical information.
- Penalty applies for non-submission or false information.
- Supports policy formulation and administration.
- Encourages accurate reporting.
One-Line Summary
Section 124 penalizes persons who fail to provide or deliberately misreport statistical information sought under GST law.
The content provided in this article is intended solely for educational and informational purposes and should not be construed as professional accounting, taxation, legal, or financial advice. Readers are advised to consult a qualified professional before making any financial, tax, legal, or business decisions based on the information contained herein.Disclaimer