Penalty for failure to comply with track and trace mechanism
Section 122B, CGST Act
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Failure to comply with the track and trace mechanism under section 148A carries a penalty of Rs 1 lakh or ten per cent of the tax payable on the goods, whichever is higher – in addition to any other penalty under the Act.
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Penalty for breaching the track-and-trace mechanism under section 148A: Rs 1 lakh or ten per cent of the tax payable on the goods, whichever is higher, over and above any other penalty.
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506 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(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.]
What changed, and when
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2025-10-01 · Inserted
Inserted (w.e.f. 01.10.2025) by section 131 of the Finance (No. 7) Act, 2025.
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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