Chapter XIX - Offences and penalties
Section 127
Section 127: Power to impose penalty in certain cases
The proper officer may impose a penalty after hearing when the case is not already covered by the specified assessment, demand, detention or confiscation proceedings.
On this page
Need advice on Section 127?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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 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.
Key takeaways
Gap procedure
Section 127 applies where an officer sees penalty liability outside proceedings under the listed sections, including 62–64, 73, 74, 74A, 129 and 130.
Hearing required
The officer must give a reasonable opportunity of hearing before the penalty order.
Specific charge
The underlying breach and applicable penalty basis must still be identified; section 127 is procedural power.
Gap procedure
Section 127 applies where an officer sees penalty liability outside proceedings under the listed sections, including 62–64, 73, 74, 74A, 129 and 130.
Hearing required
The officer must give a reasonable opportunity of hearing before the penalty order.
Specific charge
The underlying breach and applicable penalty basis must still be identified; section 127 is procedural power.
Practical checklist
Do
- Check if another listed proceeding already covers the proposed penalty.
- Request the alleged contravention and penalty basis.
- Respond with records at the hearing.
Frequently asked questions
Can an officer impose a section 127 penalty without hearing?
No. The section expressly requires a reasonable opportunity of hearing.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026