Section 127 provides the procedure for imposing penalties that arise outside assessment, demand, detention or confiscation proceedings.
Key points
- Under section 127 of the CGST Act, 2017, where a person is liable to a penalty not covered by proceedings under section 62, 63, 64, 73, 74, 74A, 129 or 130, the proper officer may issue an order levying the penalty after giving a reasonable opportunity of being heard.
The provisions
127Power to impose penalty in certain cases
Statutory text
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.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- How are standalone GST penalties imposed?
- Under section 127 of the CGST Act, by an order of the proper officer after a hearing, where the penalty is not part of assessment, demand, detention or confiscation proceedings.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
A show cause notice in Form DRC-01 and an order in DRC-07 are used. The reference to section 74A was inserted from 01.11.2024.