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Section 122A of the CGST Act, 2017

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GST›CGST Act, 2017›Chapter XIX, Offences and Penalties

At a glance

Entitlement and conditions

122A(1)Contravening a machine-registration procedure notified under section 148 attracts one lakh rupees per unregistered machine, notwithstanding the Act and in addition to other Chapter XV or penalty-Chapter penalties.
122A(2) provisoConfiscation does not apply if the penalty is paid and the machine is registered under the special procedure within three days of receiving communication of the penalty order.

Procedure, powers and definitions

122A(2)Every unregistered machine is liable to seizure and confiscation in addition to the penalty.

A manufacturer covered by a notified machine-registration procedure faces a separate penalty for each unregistered machine. This rule applies notwithstanding the Act and adds to other penalties. Unregistered machines are also exposed to seizure and confiscation, but the confiscation exception requires payment of the penalty and registration within three days of communication of the penalty order.^[1]

Quick facts

Section 122A, CGST Act, 2017

Penalty for failure to register certain machines used in manufacture of goods as per special procedure

Provision
Act	Central Goods and Services Tax Act, 2017
Chapter	XIX, Offences and Penalties
Section title	Penalty for failure to register certain machines used in manufacture of goods as per special procedure
Amendments
Last amendment	1 October 204: Inserted (w.e.f. 01.10.0204) by s. 13 of The Finance (No. 8) Act, 2024.
Amendments	1 footnote in the CBIC text (table)
Related provisions
Sections	122, 122B, 126, 148, 148A
Structure 122A(1) opening wordsThe person, the goods and the notified special procedure 122A(1) closing wordsThe machines not registered and the measure of the penalty 122A(1) middle wordsThe non obstante words and the penalty in addition 122A(2)Seizure and confiscation the proviso to 122A(2), clauses (a) and (b)The proviso against confiscation
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]
Questions reviewed	Prashant Prakash, 22 September 2026

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Act as published in the Gazette of India is the legal source.

Section 122A, verbatim (show)

Section 122A

¹[Section 122A. Penalty for failure to register certain machines used in manufacture of goods as per special procedure.-

(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.]

1. Inserted (w.e.f. 01.10.0204) by s. 13 of The Finance (No. 8) Act, 2024.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Scope the section as a whole

Questions to answer on the file1 question

What is the matter about?

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The person, the goods and the notified special procedure 122A(1) opening words

Questions to answer on the file5 questions

Is the person engaged in the manufacture of goods?
On what date did the act said to contravene the special procedure take place?
Has a special procedure relating to registration of machines been notified under section 148 in respect of those goods?
Is the person one to whom that special procedure applies?
Did the person act in contravention of that special procedure?

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The machines not registered and the measure of the penalty 122A(1) closing words

Questions to answer on the file2 questions

How many machines used in the manufacture of those goods were not registered in accordance with the special procedure?
Does the contravention involve a machine that was not registered?

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The non obstante words and the penalty in addition 122A(1) middle words

Questions to answer on the file4 questions

Is another penalty under Chapter XV or under another provision of this Chapter paid or payable by the person on the same facts?
Under which Chapter is that other penalty paid or payable: Chapter XV or any other provisions of this Chapter?
Has that other penalty been paid, or is it payable: is paid or is payable?
Is any other provision of this Act relied on to say that no penalty under this section arises?

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Seizure and confiscation 122A(2)

Questions to answer on the file3 questions

Is the machine one that was not registered in accordance with the special procedure?
Has the machine been seized?
Has an order of confiscation been made in respect of the machine?

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The proviso against confiscation the proviso to 122A(2), clauses (a) and (b)

Questions to answer on the file4 questions

Has the penalty so imposed been paid?
On what date was the communication of the order of penalty received?
On what date was the machine registered in accordance with the special procedure?
Was that registration made within three days of the receipt of communication of the order of penalty?

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.^[1]

Amendments to section 122a as footnoted in the CBIC text
Note	Change
1	Inserted (w.e.f. 01.10.0204) by s. 13 of The Finance (No. 8) Act, 2024.^[2]

Provisions connected to Section 122A
Provision	Connection	Words that tie them
Section 148	122A(1) requires Section 148	122A(1) "any special procedure relating to registration of machines has been notified under section 148"

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this section.

See also

Section 148 of the CGST Act, 2017: special procedure for certain processes
Section 122B of the CGST Act, 2017: penalty for failure to comply with track and trace mechanism

References

Central Board of Indirect Taxes and Customs. "Section 122A. Penalty for failure to register certain machines used in manufacture of goods as per special procedure". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
The Finance (No. 8) Act, 2024. Cited in CBIC footnote 1.

External links

CGST Act, 2017, Section 122A on the CBIC tax information portal