Just 18 Days After GST Registration, Chhattisgarh GST Dept Slaps ₹50,000 Penalty for Non-Filing
GST Dept fines firm Rs. 50,000 for not filing June return, despite the business registering only in July.
A strange penalty order from the Chhattisgarh State GST Department has shocked many in the business and tax community. A firm that was registered for GST only in July has been fined Rs. 50,000 for not filing a return for the month of June. The incident has caused a wave of criticism and jokes across social media, with some calling it an example of “time travel taxation.” The...
A strange penalty order from the Chhattisgarh State GST Department has shocked many in the business and tax community. A firm that was registered for GST only in July has been fined Rs. 50,000 for not filing a return for the month of June. The incident has caused a wave of criticism and jokes across social media, with some calling it an example of “time travel taxation.”
The business in question, Shivanshi Machinery and Engineering Solution, received its GST registration on July 4, 2025. On July 22, 2025, just eighteen days after registration, the Office of the Assistant Commissioner of State Tax in Raipur issued a penalty order.
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The order said the firm failed to file its GSTR return for the month of June 2025 and imposed a fine of Rs. 50,000. This included Rs. 25,000 under the Central GST and Rs. 25,000 under the State GST.
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Tax experts and professionals have pointed out that a business cannot be expected to file GST returns for a period before it is even registered. Under the GST law, returns are required only after a business receives its GST Identification Number, known as GSTIN. Filing for a month when the firm was not legally part of the GST system goes against the basic rules of taxation.
The matter came to light after a chartered accountant, AK Mittal, posted the penalty order on social media platform X (Twitter). His post was filled with sarcasm and quickly gained attention.
https://x.com/CAamanmittal/status/1950072669006643213
He questioned how the department could penalize a business for a time when it did not exist on the GST portal.
So far, the GST Department has not made any official comment on the issue. Tax professionals are urging the department to review such orders and fix the systems that allowed this mistake to happen. They say such actions hurt small businesses and damage public trust in the tax system.
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