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How to reply on show cause notice for imposing penalty prov of sec39(1),Rule61(5) ofthe GSTRules2017

Rules 45 views 1 replies

Amol Jadhav (KFIL)

1 Points Joined August 2022

How to reply on Show cause Notice for imposing penalty for the contravention of the provisions of section 39 (1), Rule 61 (5) of the GST Rules, 2017, by not furnish the monthly Returns in FORM-GSTR-3B within prescribed period/Date.

[u/s 125 of the CGST Act, 2017, the MGST Act, 2017; & u/s 20 of the IGST Act, 2017, u/s 9 & 11 of the GST (Compensation to States) Act, 2017 R/W s. 125 of the CGSTAct, 2017. (Commonly referred as GST Laws)]

Penalty Amount Rs. 50000/- under the IGST Act, 2017, as the case may be, whichever is lesser,.

Replies (1)

Aashok FC Advisory

Finance Compliance Consultant

322 Points Joined March 2026

Delayed GSTR-3B filing is specifically covered by late fee under section 47 and interest under section 50; therefore, separate general penalty under section 125 should be contested unless the department proves an independent contravention beyond mere delay.

Important caution

If your notice is for a specific period and the officer has mentioned local SGST/MGST provisions also, the reply should be aligned to the same State Act as well. Also, facts matter a lot:

whether tax was payable or nil,
whether return has already been filed,
whether registration is cancelled,
whether notice is only proposal or final order.

Your best reply is to say that the delay was genuine, returns are now being filed / already filed, tax-interest-late fee are being paid, there was no intent to evade tax, and since late filing is specifically covered by section 47, general penalty under section 125 should be requested to be dropped.