Section 122A of CGST Act 2017: Penalty for failure to register machines under special procedure

Provisions under Section 122A of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Penalty for failure to register machines under special procedure”:

Section 122A of CGST Act 2017: Penalty for failure to register certain machines used in manufacture of goods as per special procedure (CHAPTER XIX – OFFENCES AND PENALTIES) [section 122A inserted, pending commencement: refer Note 1]

(1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.

(2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation:

Provided that such machine shall not be confiscated where–

(a) the penalty so imposed is paid, and

(b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.

Amendments History:

1. Section 122A inserted vide Section 13 of the Finance Act, 2024, pending Notification on commencement date thereof.

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