Section 122B: Penalty for Non-Compliance with Track and Trace Mechanism
A new section, 122B, has been added to the Central Goods and Services Tax Act. This section introduces penalties for individuals who fail to comply with the track and trace mechanism as outlined in section 148A(1)(b) of the Act. If a person violates these provisions, they will face a penalty. This penalty will be the greater of two amounts: either one lakh rupees or 10% of the tax payable on the goods in question. This penalty is in addition to any other penalties that may apply under Chapter XV or other relevant sections of the Act. This measure ensures stricter compliance with the track and trace requirements, aiming to enhance transparency and accountability in the taxation process.
Note: It is an AI generated summary for reference purpose only.
Insertion of new section 122B.
131. After section 122A of the Central Goods and Services Tax Act, the following section shall be inserted, namely:—
Penalty for failure to comply with track and trace mechanism.
“122B. Notwithstanding anything contained in this Act, where any person referred to in clause (b) of sub-section (1) of section 148A acts in contravention of the provisions of the said section, he shall, in addition to any penalty under Chapter XV or the provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees or ten per cent. of the tax payable on such goods, whichever is higher.”.
