What is Section 124 of the CGST Act?
Section 124 provides a fine where a person who is required to furnish information or a return under Section 151 either fails to furnish it without reasonable cause or wilfully furnishes, or causes to be furnished, information or a return that the person knows to be false.
The initial fine may extend to ₹10,000. Where the offence continues, an additional fine may extend to ₹100 for each day after the first day during which the offence continues, subject to a maximum limit of ₹25,000.
Section 124 explained — complete contents
1Current statutory text
Section 124 is short, but it contains two different types of conduct: failure without reasonable cause and wilfully furnishing or causing false information to be furnished.
Section 124 — Fine for failure to furnish statistics.
If any person required to furnish any information or return under section 151—
(a) without reasonable cause fails to furnish such information or return as may be required under that section, or
(b) wilfully furnishes or causes to furnish any information or return which he knows to be false,
he shall be punishable with a fine which may extend to ten thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues, subject to a maximum limit of twenty-five thousand rupees. citeturn0search24turn0search26
2What does Section 124 mean?
Section 124 should be understood as a provision connected to the Government's power to collect statistics under Section 151. If the law requires a person to provide information or a return under that statistical framework, the person cannot simply ignore the requirement without a reasonable cause. Similarly, deliberately providing information that the person knows to be false can attract the fine.
Situation A — no reasonable cause
The person is required to furnish information under Section 151 but does not do so and cannot establish a reasonable cause for the failure.
Situation B — knowingly false information
The person furnishes, or causes another person to furnish, information that the person knows to be false and does so wilfully.
Continuing offence
If the statutory offence continues, the provision allows a further fine of up to ₹100 per day after the first day.
Overall ceiling
The total fine under the provision is subject to a maximum limit of ₹25,000.
3How Section 151 connects to Section 124
Section 151 is titled “Power to collect statistics.” It is the provision that gives the Commissioner or an authorised officer the statutory power to direct persons to furnish information relating to matters dealt with by the Act, where the information is required for specified statistical purposes.
This connection is essential because Section 124 does not independently create a general obligation for every person to provide any statistics the department may ask for. The information/return referred to by Section 124 is information or a return required under Section 151.
What can a statistics direction look like in practice?
The practical request could require information relating to a defined GST subject or population for the purpose of compiling or analysing statistics. The recipient should therefore read the statutory direction carefully and identify the exact data, period, format and deadline.
| Question | What to check |
|---|---|
| Who issued it? | Identify the Commissioner or authorised officer and the authority cited. |
| What is requested? | Identify the exact information or return required. |
| Why is it required? | Check the stated statistical purpose and statutory basis. |
| For which period? | Record the reporting period or transaction period. |
| By when? | Record the specified deadline. |
| In what format? | Follow the prescribed/requested form, electronic file or data structure where applicable. |
4Failure to furnish information without reasonable cause
Section 124(a) applies where a person is required to furnish information or a return under Section 151 and, without reasonable cause, fails to furnish it.
Why “reasonable cause” matters
The words “without reasonable cause” are important. They indicate that the legal analysis is not simply “information was late, therefore fine.” The facts surrounding the failure matter. A genuine system failure, natural disaster, serious operational disruption or another substantiated circumstance may need to be considered in determining whether there was reasonable cause. Whether a particular explanation qualifies is a question of fact and law in the circumstances of the case.
Examples of evidence that may support a reasonable-cause explanation
- System outage reports and incident tickets;
- Official portal or technical error evidence where applicable;
- Natural disaster or other exceptional-event documentation;
- Records showing a sudden and documented loss of required data access;
- Correspondence showing that clarification was sought before the deadline;
- Evidence that the requested data was unavailable from a legally relevant third-party source despite reasonable efforts.
These are examples, not an automatic statutory safe harbour. The person must establish the factual circumstances relevant to the particular failure.
5Wilfully furnishing information known to be false
Section 124(b) addresses a more serious type of conduct than an innocent data-entry mistake. The wording covers a person who wilfully furnishes or causes to furnish information or a return that the person knows to be false.
Break the wording into four questions
| Element | Plain-language question |
|---|---|
| Required under Section 151 | Was the information/return part of the Section 151 statistical requirement? |
| Furnishes or causes to furnish | Did the person personally submit it, or cause someone else to submit it? |
| Wilfully | Was the conduct deliberate rather than an accidental mistake? |
| Knows it to be false | Did the person know that the information being furnished was false? |
Example — deliberate false statistics
Suppose an organisation is required to provide a statistics return containing a defined transaction volume. Its responsible officer has access to the actual system data, knows that the true figure is 1,000 transactions, but deliberately instructs the reporting team to submit 100 to create a false statistical picture. If the statutory conditions are established, this is materially different from an accidental data-entry error and can fall within the language of Section 124(b).
Example — accidental spreadsheet error
An employee copies a column incorrectly and submits a figure that is later discovered to be wrong. The company immediately corrects the information and there is no evidence that the person knew the figure was false or deliberately submitted it. Section 124(b) should not be described as automatically applying merely because the submitted figure was incorrect; the statutory mental element matters.
6How much is the fine under Section 124?
The provision has two layers: an initial fine that may extend to ₹10,000 and, for a continuing offence, a further fine that may extend to ₹100 for each day after the first day, subject to an overall maximum of ₹25,000.
Continuing component: up to ₹100 × each day after the first day
Overall maximum: ₹25,000
| Illustration | Maximum continuing calculation | Overall statutory ceiling |
|---|---|---|
| 1 day | Initial fine up to ₹10,000 | ₹25,000 ceiling applies |
| 10 days | Up to ₹10,000 + ₹100 × 9 = ₹10,900 | ₹10,900 maximum on this illustration |
| 30 days | Up to ₹10,000 + ₹100 × 29 = ₹12,900 | ₹12,900 maximum on this illustration |
| 50 days | Up to ₹10,000 + ₹100 × 49 = ₹14,900 | ₹14,900 maximum on this illustration |
| 100 days | Up to ₹10,000 + ₹100 × 99 = ₹19,900 | ₹19,900 maximum on this illustration |
| 151 days | ₹10,000 + ₹100 × 150 = ₹25,000 | ₹25,000 maximum |
| 200 days | ₹10,000 + ₹100 × 199 = ₹29,900 | ₹25,000 maximum |
Why “may extend to” matters
The figures in Section 124 are maximum limits. They should not be presented as an automatic fixed ₹10,000 plus ₹100 per day in every case. The actual order and circumstances must be examined.
7Section 124 vs Section 123
| Point | Section 123 | Section 124 |
|---|---|---|
| Subject | Failure to furnish information return | Fine for failure to furnish statistics |
| Linked section | Section 150 | Section 151 |
| Conduct | Failure to furnish required information return within specified notice period | Failure without reasonable cause OR wilfully furnishing/cause to furnish information known to be false |
| Daily amount | ₹100 per day of continuing failure | Further fine up to ₹100 per day after the first day of continuing offence |
| Maximum | ₹5,000 | ₹25,000 |
| False information limb | Not the defining trigger | Expressly covered by Section 124(b) |
Section 124 → Section 151 → statistics → ₹25,000 cap + false-information limb.
8Detailed real-world examples
Example 1 — no response without reasonable cause
An entity receives a valid Section 151 requirement and does nothing. It has the information readily available but does not furnish it and cannot establish a reasonable cause. Section 124(a) may become relevant.
Example 2 — deliberate under-reporting
A reporting team has actual statistics showing 20,000 transactions but management deliberately instructs the team to report 12,000 in the Section 151 return. If the statutory elements are established, Section 124(b) can be relevant because the provision expressly addresses wilfully furnishing or causing to furnish information known to be false.
Example 3 — genuine technical problem
A company attempts to submit the required information but faces a documented technical failure and immediately raises the issue through the appropriate channel. It later furnishes the information. Whether the circumstances constitute reasonable cause depends on the evidence and applicable law, but the company has created a factual record rather than simply ignoring the obligation.
Example 4 — employee makes an accidental data error
An employee mistakenly enters 5,200 instead of 5,020 in a spreadsheet and the error is discovered quickly. The company corrects the data and maintains the original working. An incorrect number alone does not establish the “wilfully” and “knows to be false” elements of Section 124(b).
Example 5 — employee knowingly submits false information
An employee discovers that the actual figure is 8,500 but is instructed to report 6,000 and knowingly submits the lower figure. The company should immediately preserve the relevant records, correct the information through the appropriate process and obtain legal/tax advice because the facts may raise the specific issues contemplated by Section 124(b).
Example 6 — wrong file uploaded by mistake
A reporting officer uploads the wrong version of a file, notices the problem and promptly corrects it. The organisation should document the correction, preserve both versions and retain the submission trail. Whether a penalty provision applies depends on the statutory requirements and facts, not simply on the existence of an upload mistake.
Example 7 — continuing failure
A person does not furnish the required information and the offence continues. Section 124 permits a further fine of up to ₹100 for each day after the first day during which the offence continues, subject to the overall ₹25,000 limit.
Example 8 — information unavailable from third party
An organisation is required to provide information that depends on records held by another party. It makes documented requests, follows up, informs the authority of the issue and provides available information. Whether that constitutes reasonable cause depends on the facts, but the documented effort may be relevant to the legal assessment.
Example 9 — statistics prepared from ERP
A company receives a statistics request covering transactions across multiple projects. The finance team extracts data from separate ERP instances, consolidates it, reconciles totals to the general ledger and submits the final information. The company should retain the consolidation workbook and source reports so that it can explain how the submitted figure was derived.
Example 10 — “I thought it was optional”
A recipient receives a statutory Section 151 requirement but assumes the request is merely voluntary. That assumption should not be made without checking the legal basis of the communication. Once a statutory requirement is established, the recipient should either comply or raise a legally supported issue/clarification.
9Compliance workflow for finance and tax teams
For a company with multiple projects, GST registrations or large transaction volumes, statistics requests should be handled through a formal regulatory-information workflow.
1. Register the request
- Notice/reference number
- Date received
- Issuing authority
- Section cited
- Deadline
2. Validate the legal obligation
- Confirm Section 151 basis
- Identify recipient
- Identify information required
- Check period and scope
3. Build source data
- ERP reports
- GST records
- Financial statements
- Project/branch data
- External source data
4. Review and submit
- Reconcile totals
- Tax review
- Legal/compliance review where needed
- Management approval
- Submission proof
Recommended statistics-request tracker
| Field | Recommended record |
|---|---|
| Statutory basis | Section 151 and related direction/communication |
| Scope | Exact information/statistics required |
| Reporting period | Month/quarter/year or other period |
| Data owner | Finance, tax, operations, IT or other responsible team |
| Source systems | ERP, GST portal records, project systems, bank/other records |
| Reconciliation | Source-to-report validation performed |
| Reviewer | Independent reviewer before submission |
| Submission proof | Acknowledgement/reference number and final file |
| Correction log | Any post-submission correction and reason |
10What should you do when Section 151 information is requested?
- Identify the statutory basis. Confirm that the request is actually made under Section 151.
- Identify the exact recipient. Confirm why your organisation/person is within the statutory scope.
- Understand the requested statistics. Define every field before data extraction begins.
- Freeze the source period. Avoid changing source data during preparation without documenting the change.
- Reconcile the output. Compare the statistics with the underlying ERP/accounting/GST data.
- Document assumptions. If the request is ambiguous, record the clarification sought and the response received.
- Check for false-data risk. Do not knowingly submit figures that the reporting team has identified as false.
- Submit on time. Keep proof of submission.
- Correct discovered errors properly. If an error is discovered after submission, do not silently overwrite internal records; follow the applicable correction/communication process.
11Records to preserve
Request evidence
- Original communication
- Proof of receipt
- Attachments
- Clarifications
Source evidence
- ERP extracts
- Ledger reports
- GST data
- Supporting registers
Working evidence
- Consolidation workbook
- Reconciliation
- Formula checks
- Reviewer comments
Submission evidence
- Final file
- Acknowledgement
- Reference number
- Correction correspondence
For large data submissions, preserve the exact final dataset that was furnished, not merely the spreadsheet used to prepare it. This helps demonstrate what information was actually submitted if the department later asks for clarification.
12Common misunderstandings about Section 124
“Section 124 is a normal GST late fee.”
No. It is a specific fine connected with information/returns required under Section 151.
“Any wrong number means false information under 124(b).”
No. Clause (b) specifically refers to wilfully furnishing or causing to furnish information known to be false. An accidental error should not automatically be described as knowing falsity.
“The fine is always ₹10,000.”
No. ₹10,000 is the amount to which the initial fine may extend. The actual fine depends on the applicable facts and order.
“The daily fine is unlimited.”
No. The continuing component is subject to the overall maximum limit of ₹25,000.
“Section 124 and Section 123 are the same.”
No. Section 123 is tied to Section 150 information returns and has a ₹5,000 cap. Section 124 is tied to Section 151 statistics and has a ₹25,000 maximum limit.
“A departmental request for purchase invoices automatically falls under Section 124.”
No. The statutory provision under which the request is made must be identified. Section 124 specifically refers to information or a return required under Section 151.
14Questions people commonly search
- What is Section 124 of the CGST Act?
- What is Section 124 GST?
- What is fine for failure to furnish statistics under GST?
- What is Section 151 of the CGST Act?
- What is the penalty under Section 124?
- What is the maximum fine under Section 124?
- Is the Section 124 fine ₹10,000?
- What is the ₹100 per day fine under Section 124?
- What is the maximum ₹25,000 fine under GST?
- What happens if false information is furnished under GST?
- What is Section 124(a) of CGST Act?
- What is Section 124(b) of CGST Act?
- What is reasonable cause under Section 124?
- Difference between Section 123 and 124 of CGST Act?
- Does Section 124 apply to GSTR-1?
- Does Section 124 apply to GSTR-3B?
- What information can be requested under Section 151?
15Frequently asked questions on Section 124
1. What is Section 124 of the CGST Act?
It provides a fine for a person required to furnish information or a return under Section 151 who, without reasonable cause, fails to furnish it, or who wilfully furnishes or causes to furnish information or a return known to be false.
2. What is the maximum fine under Section 124?
The provision permits a fine that may extend to ₹10,000 and, for a continuing offence, a further fine that may extend to ₹100 per day after the first day, subject to a maximum limit of ₹25,000.
3. Is ₹25,000 automatically payable?
No. ₹25,000 is the maximum limit. The actual amount depends on the facts and the order.
4. What is Section 124(a)?
It concerns failure, without reasonable cause, to furnish information or a return required under Section 151.
5. What is Section 124(b)?
It concerns wilfully furnishing or causing to furnish information or a return that the person knows to be false.
6. Does an innocent mistake automatically attract Section 124(b)?
No. The clause expressly contains the words “wilfully” and “knows to be false.” The facts and evidence must establish the statutory requirements.
7. What does “reasonable cause” mean?
The Act does not provide a single universal list covering every possible situation. Whether a particular reason is reasonable depends on the facts, evidence and applicable law.
8. Is Section 124 the same as Section 123?
No. Section 123 is connected with Section 150 information returns and has a ₹5,000 maximum. Section 124 is connected with Section 151 statistics and has a ₹25,000 maximum.
9. Does Section 124 apply to delayed GSTR-3B?
Not merely because GSTR-3B is delayed. Section 124 specifically concerns information or a return required under Section 151.
10. Can a company submit corrected statistics?
Where an error is discovered, the company should follow the applicable statutory/departmental correction mechanism and preserve evidence of the correction. It should not silently alter its internal record of the original submission.
11. What should be done if the requested statistics cannot be prepared on time?
Identify the reason immediately, document the issue, communicate through the appropriate channel and request clarification or additional time where legally available. Do not simply ignore the requirement.
12. What evidence can support reasonable cause?
Depending on the circumstances, system outage records, official technical errors, exceptional-event documents, correspondence seeking clarification and records of reasonable attempts to obtain required data may be relevant.
13. What is the continuing fine under Section 124?
For a continuing offence, the provision allows a further fine that may extend to ₹100 for each day after the first day during which the offence continues, subject to the ₹25,000 maximum.
14. Who can require statistics under Section 151?
Section 151 empowers the Commissioner or an authorised officer to direct persons to furnish information relating to matters dealt with in the Act where required for the specified statistical purpose. The exact direction and its recipient must be examined.
15. Can Section 124 be challenged?
Any challenge must be assessed under the applicable adjudication and appeal framework, based on the actual order, statutory basis, facts and limitation period. The recipient should identify the precise provision and procedural stage before deciding the next step.
16Section 124 in one minute
| Point | Remember |
|---|---|
| Linked provision | Section 151 — power to collect statistics. |
| Clause (a) | Failure to furnish required information/return without reasonable cause. |
| Clause (b) | Wilfully furnishing or causing to furnish information/return known to be false. |
| Initial fine | May extend to ₹10,000. |
| Continuing fine | May extend to ₹100 per day after the first day. |
| Maximum | ₹25,000. |
| Key distinction | Not the same as Section 123 information-return penalty. |
| Best control | Maintain a statutory-request register, maker-checker review, source-data reconciliation and submission evidence. |
How to use this page
This page is prepared for public education, GST compliance awareness and practical workflow support. It is not a substitute for the CGST Act, CGST Rules, notifications, circulars, departmental instructions or judicial decisions applicable to a specific person, transaction or period.
For an actual statistics request, fine proceeding or allegation of false information, verify the law applicable to the relevant date, the exact Section 151 direction, the information requested, the evidence supporting any reasonable-cause explanation and the wording of the order. Professional advice may be appropriate for disputed or high-impact matters.