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Informative

Penalty u/s 125 of GST Cannot Be Levied When Late Fee u/s 47 Already Imposed: Madras HC

Update / Judgement Date

31 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GSTOther Legal Matters

The Madras High Court has ruled that a "penalty under Section 125 of GST" cannot be levied when a "late fee under Section 47" has "already been imposed." The court's decision, which is a significant victory for the company, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.