Section 124 of CGST Act - Fine for Failure to Furnish Statistics
Section 124 of the Central Goods and Services Tax Act, 2017 is contained in Chapter XIX, "Offences and Penalties". It provides for a monetary fine where a person required to furnish information under Section 151 fails to do so without reasonable cause, or wilfully furnishes information known to be false.
Text and meaning of Section 124
Section 124 - Fine for failure to furnish statistics
Where a person is required to furnish information or a return under Section 151, Section 124 applies if that person:
- without reasonable cause fails to furnish the information or return required under that section; or
- wilfully furnishes, or causes to be furnished, information or a return which the person knows to be false.
The person may be punished with a fine extending to Rs. 10,000. If the offence continues, a further fine extending to Rs. 100 for every day after the first day may be imposed, subject to the statutory maximum of Rs. 25,000 for the continuing offence.
Essential ingredients of Section 124
The provision covers two distinct forms of default. The first is non-furnishing of information without reasonable cause. The second is the wilful furnishing of information known to be false. The statutory language therefore distinguishes an unexplained failure to comply from deliberate false furnishing.
| Requirement | Section 124 consequence |
|---|---|
| Person is required to furnish information under Section 151 | Section 124 can become relevant to non-compliance with that requirement. |
| Failure to furnish without reasonable cause | Fine may extend to Rs. 10,000. |
| Wilful furnishing of information known to be false | Fine may extend to Rs. 10,000. |
| Continuing offence | Further fine may extend to Rs. 100 per day after the first day, subject to the statutory maximum of Rs. 25,000. |
Section 151 - Power to call for information
Section 124 expressly refers to Section 151. Section 151 was substituted with effect from 1 January 2022. The present Section 151 is titled "Power to call for information" and authorises the Commissioner, or an officer authorised by the Commissioner, to direct any person by order to furnish information relating to any matter dealt with in connection with the CGST Act, within the time, form and manner specified in the order.
Important statutory update: Although the heading of Section 124 continues to use the words "Fine for failure to furnish statistics", the current Section 151 is no longer titled "Power to collect statistics". It now deals more broadly with the power to call for information. Section 124 should therefore be read together with the presently applicable text of Section 151.
Read the related provision: Section 151 of the CGST Act.
What is "reasonable cause" under Section 124?
Section 124 does not define "reasonable cause". Whether a cause is reasonable will depend on the facts and circumstances of the particular case. The statutory wording is important because mere failure to furnish information is not described in clause (a) in isolation; the failure must be "without reasonable cause".
False information must be furnished wilfully
For the false-information limb of Section 124, the provision uses the expressions "wilfully" and "knows to be false". This language makes the person's knowledge and deliberate conduct relevant. An inadvertent mistake is therefore textually different from knowingly furnishing false information, although the legal effect in any individual case depends on the evidence and applicable proceedings.
Fine under Section 124
The basic fine under Section 124 may extend to Rs. 10,000. Where the offence is continuing, the provision permits an additional fine of up to Rs. 100 for each day after the first day during which the offence continues, subject to the maximum limit stated in the section.
Related CGST Act provisions
Section 124 forms part of the CGST Act framework dealing with offences and penalties. Nearby provisions include Section 123 - Penalty for failure to furnish information return, Section 125 - General penalty, and Section 126 - General disciplines related to penalty.
Practical compliance point
A person receiving a valid direction under Section 151 should identify the information sought, the prescribed time, form and manner of furnishing it, and maintain evidence of timely compliance. If compliance is not possible, the reason should be documented promptly because Section 124 expressly refers to failure "without reasonable cause".
Updated: 15 September 2026. This page is a general legal information resource and should be read with the current statutory text, amendments, notifications and applicable judicial decisions.