Track & Trace Mechanism -Insertion Of Section 148A & 122B – CGST Act, 2017

GST UPDATEZ ON 04-02-2025 by R.SRIVATSAN, IRS, NACIN, CHENNAI

On the basis of the recommendations of the GST council a new Section 148A is being inserted which provides that the Government may, by notification, specify–

(a) the goods;
(b) persons or class of persons

who are in possession or deal with such goods, to which the provisions of this section shall apply to comply with a set of regulations.

The Government may, in respect of the goods notified –

(a) provide a system for enabling affixation of unique identification marking and for electronic storage and access of information contained therein, through such persons, as may be prescribed;

The persons so notified shall

(a) affix on the said goods or packages thereof, a unique identification marking, containing such information and in such manner;
and
(b) furnish such information and details within such time and maintain such records.

The term Unique Identification Marking has been defined by inserting Section 2(116A) which means the unique identification marking referred to in Section 148(2)(b) and includes a digital stamp, digital mark or any other similar marking, which is unique, secure and non-removable.

Further, one more provision Section 122B is being introduced to levy penalty for failure to comply with the provisions of Section 148A.

The said section provides that, notwithstanding anything contained in this Act, where any person notified under Section 148A to in acts in contravention of the provisions of the said section, he shall, in addition to any penalty under Chapter XV or the provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees or 10% of the tax payable on such goods, whichever is higher.

Well…..

A combined reading of Section 148A and Section 122B indicates that Section 148A is being introduced to identify goods which are probably evasion prone, which will be labeled with a unique identification marking as defined under Section 2(116A) of the CGST Act and that require electronic storage and access.

Taxpayers dealing in such goods will have to abide by the section maintain records and furnish the same as and when required.

In terms of Section 122B, the failure to do so will make such an assessee liable to pay a penalty equal to an amount of one lakh rupees or 10% of the tax payable on such goods whichever is higher, in addition to any other penalty payable under GST Acts.

The new provisions have been inserted during Budget 2025 proposals in terms of clause 126 & 127 of the Finance Bill 2025

Also, Read Key changes under GST Law in Union Budget 2025-26