Amended and updated notes on section 150 of CGST Act, 2017. Detail discussion on provisions and rules related to obligation to furnish information return.
Chapter XXI (Sections 143–174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 150 of CGST 2017 provides for obligation to furnish information return.
Recently, we have discussed in detail section 149 (Goods and services tax compliance rating) of CGST Act 2017. Today, we learn the provisions of section 150 of Central GST Act 2017.
Section 150 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 150 is 22-6-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XXI |
| Chapter Name | Miscellaneous |
| Section No. | 150 |
| Section Name | Obligation to furnish information return |
| Updated 2025 Edition | GST Law Book PDF |
Section 150 of Central GST – Obligation to furnish information return1
Section 150 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.
Section 150(1) of CGST Act
Section 150(1): Any person, being—
- (a) a taxable person; or
- (b) a local authority or other public body or association; or
- (c) any authority of the State Government responsible for the collection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for the collection of excise duty or customs duty; or
- (d) an income tax authority appointed under the provisions of the Income-tax Act, 1961; or
- (e) a banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934; or
- (f) a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003, or any other entity entrusted with such functions by the Central Government or the State Government; or
- (g) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908; or
- (h) a Registrar within the meaning of the Companies Act, 2013; or
- (i) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or
- (j) the Collector referred to in clause (c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or
- (k) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956; or
- (l) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996; or
- (m) an officer of the Reserve Bank of India as constituted under section 3 of the Reserve Bank of India Act, 1934; or
- (n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013; or
- (o) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25; or
- (p) any other person as may be specified, on the recommendations of the Council, by the Government,
who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, shall furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed.
Section 150(2) of CGST Act
Section 150(2): Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said authority may allow and if the defect is not rectified within the said period of thirty days or, the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such information return shall be treated as not furnished and the provisions of this Act shall apply.
Section 150(3) of CGST Act
Section 150(3): Where a person who is required to furnish information return has not furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing of such information return within a period not exceeding ninety days from the date of service of the notice and such person shall furnish the information return.
- Section 150 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎
Notes on Section 150 of CGST Act
Explanation of CGST Section 150(1)
Section 150(1) of the Central Goods and Services Tax (CGST) Act, 2017, mandates certain entities and authorities to furnish an information return regarding specific financial and transactional details. This section ensures that relevant information is provided to the tax authorities for better compliance, tax administration, and detection of tax evasion.
Key Points of Section 150(1)
- Who is Required to Furnish an Information Return?
The following entities must furnish information returns:- Taxable persons (registered under GST).
- Local authorities or public bodies responsible for tax collection.
- State or Central tax authorities (responsible for VAT, sales tax, excise duty, customs duty, etc.).
- Income tax authorities (appointed under the Income-tax Act, 1961).
- Banking companies as per the RBI Act, 1934.
- State Electricity Boards or licensed electricity distribution/transmission companies.
- Registrars and Sub-Registrars under the Registration Act, 1908.
- Registrars under the Companies Act, 2013.
- Motor vehicle registering authorities under the Motor Vehicles Act, 1988.
- Collectors under the Land Acquisition Act, 2013.
- Recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956.
- Depositories under the Depositories Act, 1996.
- Reserve Bank of India officers.
- Goods and Services Tax Network (GSTN).
- Persons holding a Unique Identity Number (UIN) under GST.
- Any other person as specified by the Government on the recommendation of the GST Council.
- What Type of Information Needs to be Furnished?
These entities are responsible for maintaining and submitting records related to:- Registration records.
- Statements of accounts.
- Periodic returns.
- Details of tax payments.
- Transactions involving goods or services.
- Bank account transactions.
- Electricity consumption details.
- Property transactions (purchase, sale, exchange, rights, or interest in a property).
- How and When to Furnish the Information Return?
- The return must be furnished within the prescribed time.
- It should be provided in the prescribed form and manner.
- It must be submitted to the specified authority or agency.
Purpose of Section 150(1)
- Enhances transparency in tax administration.
- Helps in identifying discrepancies between reported GST transactions and other financial records.
- Assists in detecting tax evasion and ensuring compliance.
- Enables better coordination between tax departments and regulatory authorities.
Conclusion
CGST Section 150(1) plays a critical role in ensuring inter-agency coordination and compliance by requiring various authorities and institutions to share tax-related data with the GST authorities. This provision strengthens GST enforcement and revenue collection by ensuring that relevant financial transactions are monitored.
Explanation of CGST Section 150(2)
Section 150(2) of the Central Goods and Services Tax (CGST) Act, 2017 deals with situations where an information return furnished by an entity (as per Section 150(1)) is found to be defective. It provides the procedure for rectification and the consequences of failing to rectify the defect.
Key Provisions of Section 150(2):
- Identification of Defective Information Return
- If the Commissioner or an authorized officer finds that the information return submitted under Section 150(1) is defective, he has the authority to take corrective action.
- Intimation to the Person Furnishing the Return
- The concerned authority will notify the defect to the person who submitted the information return.
- The notice will include details of the errors and provide an opportunity for correction.
- Time Limit for Rectification
- The person must rectify the defect within 30 days from the date of receiving the intimation.
- An extension may be granted if the person applies for additional time and the authority allows it.
- Consequences of Non-Rectification
- If the defect is not rectified within 30 days or the extended period, then:
- The information return will be treated as not furnished.
- Other provisions of the CGST Act will apply accordingly, which may include penalties and legal consequences for non-compliance.
- If the defect is not rectified within 30 days or the extended period, then:
Purpose of Section 150(2)
- Ensures accuracy and reliability of information provided to GST authorities.
- Prevents misreporting or errors in tax-related data.
- Provides a fair opportunity for rectification before considering the return as non-furnished.
- Strengthens tax administration and compliance monitoring.
Conclusion
Section 150(2) ensures that entities filing information returns under CGST provide accurate and error-free data. If errors are found, the responsible person is given a chance to correct them, but failure to do so results in the return being considered as not filed, leading to potential penalties or other legal consequences under the CGST Act.
Explanation of CGST Section 150(3)
Section 150(3) of the Central Goods and Services Tax (CGST) Act, 2017 outlines the procedure and consequences when a person required to submit an information return under Section 150(1) or 150(2) fails to do so within the specified time.
Key Provisions of Section 150(3):
- Failure to Furnish the Information Return
- If a person or entity required to submit an information return under Section 150(1) (initial submission) or Section 150(2) (after rectification) does not furnish it within the given time, action can be taken.
- Issuance of Notice by the Authority
- The Commissioner or an authorized officer may issue a notice to the defaulter.
- The notice will demand compliance by specifying a new deadline.
- Maximum Time Allowed for Compliance
- The notice will provide a final deadline of up to 90 days from the date of service of the notice.
- The person receiving the notice must submit the required information return within this period.
Purpose of Section 150(3):
- Ensures that non-compliant entities provide required data even if they miss the initial deadline.
- Provides a structured process for enforcing compliance before imposing penalties.
- Gives defaulters a reasonable opportunity to furnish the required information.
Conclusion:
Section 150(3) ensures that delayed or non-furnished information returns are eventually submitted. If a person fails to comply with the initial deadlines, tax authorities can issue a formal notice requiring submission within 90 days, reinforcing compliance and preventing tax evasion.