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HomeGSTChhattisgarh GST Dept. Fines Firm Before It Even Existed

Chhattisgarh GST Dept. Fines Firm Before It Even Existed

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In a bizarre and seemingly impossible turn of events, a GST penalty order from Chhattisgarh has sparked outrage and ridicule across social media, with tax professionals accusing the department of “time travel”.

A penalty notice under Section 125 of the CGST Act was issued on July 22, 2025, against a firm for allegedly not filing its GSTR for June 2025. The only problem? The firm’s GST registration is dated July 4, 2025 — nearly two weeks afterthe supposed non-compliance occurred.

The order, issued by the Office of the Assistant Commissioner of State Tax, Raipur Zone-07, slapped a hefty ₹50,000 fine (₹25,000 CGST + ₹25,000 SGST) on “Shivanshi Machinery and Engineering Solution”. The basis? Non-filing of GSTR for a period when the firm legally didn’t even exist on the GST portal.

Twitter Explodes Over the ‘Time Travel Taxation’

The incident came to light after CA AK Mittal posted the order on X (formerly Twitter), calling out the glaring administrative blunder. “I think some Officers of Chhattisgarh State GST Dept are working high on weed!!” he tweeted sarcastically. The tweet has since garnered over 13,000 views, hundreds of likes, and a flood of incredulous reactions.

“Isn’t this the case of time travel?” quipped one user.

Another user commented, “This is what happens when bureaucracy meets absurdity. Kafka would be proud.”

A Symptom of a Bigger Problem?

Tax professionals say such mistakes are not just comical but deeply problematic. “This is not merely an error. It reflects systemic failure in checks and logic validation within the GST system,” said Ruchir Bhatia, an indirect tax expert.

Under GST law, GSTR filings become due only after GSTIN allotment and commencement of taxable supply. Issuing penalties for a period before registration is not only illegal but also undermines taxpayer confidence, say experts.

Official Silence So Far

At the time of reporting, there has been no official response from the Chhattisgarh State GST Department. Repeated calls and emails sent to senior officials have gone unanswered.

Meanwhile, the episode has become a lightning rod for criticism against the growing bureaucratic opacity and automation without accountability.

https://twitter.com/CAamanmittal/status/1950072669006643213

Read More: Big Boost to #EaseOfDoingBusiness: CBIC Launches ACE System for Online Duty Exemptions via SWIFT 2.0

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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