Offences & Penalties

Power to impose penalty in certain cases

Section 127, CGST Act

Chapter 19 Text as on 2026-09-05 Source CBIC

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Amendment history

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In one line

Section 127 lets the proper officer impose a penalty where a person is liable to penalty but the case is not covered by the assessment/demand/detention sections, after a hearing.

What this means in practice

The parts that actually decide cases — the things a practitioner checks first.

Where a penalty is not covered by sections 62, 63, 64, 73, 74 or 74A, the officer must issue a separate order under section 127 after a hearing – a penalty tacked on to another order without that process is challengeable.

The exact words of the law

432 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

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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.

High Court cases on this section

Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.

ALLOWED Madras High Court · 2024-02-28

Tvl Periyasamy Chandran v. The Deputy State Tax Officer (ST) -1,

Read the judgment PDF →

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

date not stated · Inserted

Inserted by section 145 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.

Read this with

A provision rarely works alone. These are the ones it points to.

Section 62 Section 63 Section 64 Section 73 Section 74 Section 74A Section 129 Section 130

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 If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

section 127 cgstpower to impose penalty in certain cases

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