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 127, verbatim (show)
Section 127
* Section 127. Power to impose penalty in certain cases.-
Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or section 74 1[or section 74A] or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.
*Enforced w.e.f. 1st July, 2017 .
1. Inserted by section 145 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
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.
Conditions for the residual penalty order 127
Questions to answer on the file7 questions
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]
| Note | Change |
|---|---|
| 1 | Inserted by section 145 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.[2] |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 62 | 127 exception in Section 62 | 127 "section 62" |
| Section 63 | 127 exception in Section 63 | 127 "section 63" |
| Section 64 | 127 exception in Section 64 | 127 "section 64" |
| Section 73 | 127 exception in Section 73 | 127 "section 73" |
| Section 74 | 127 exception in Section 74 | 127 "section 74" |
| Section 74A | 127 exception in Section 74A | 127 "section 74A" |
| Section 129 | 127 exception in Section 129 | 127 "section 129" |
| Section 130 | 127 exception in Section 130 | 127 "section 130" |
| Section 2 | 127 defined by Section 2 clause (91) | 127 "the proper officer" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (2)
| Number | Date | Subject |
|---|---|---|
| Circular No. 224/18/2024-GST | 11 July 2024 | Guidelines for recovery of outstanding dues, in cases wherein first appeal has been disposed of, till Appellate Tribunal comes into operation. |
| Circular No. 3/03/2017-GST | 5 July 2017 | Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg. |
Notifications (2)
| Number | Date | Subject |
|---|---|---|
| Notification No. 12/2024-Central Tax | 10 July 2024 | Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017. |
| Notification No. 16/2019-Central Tax | 29 March 2019 | Seeks to make Second Amendment (2019) to CGST Rules. |
Unsettled questions
The words of section 127 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- What makes the hearing opportunity reasonable for the person before a penalty order under section 127? The section prescribes no minimum notice period or hearing form.
See also
- Section 126 of the CGST Act, 2017: general disciplines related to penalty
- Section 74A of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
References
- Central Board of Indirect Taxes and Customs. "Section 127. Power to impose penalty in certain cases". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
- The Finance Act (No. 2) Act, 2024. Cited in CBIC footnote 1.
External links
- CGST Act, 2017, Section 127 on the CBIC tax information portal