Failure to file GSTR-3B and non-payment of tax constitute suppression of facts and attract penalties. Andhra Pradesh High Court judgment (Sriba Nirman Company vs The Joint Commissioner of Central Tax; W. P. No. 25826 of 2023; 29-Jan-2025) affirmed by the Supreme Court (Sriba Nirman Company vs The Commissioner (Appeals), Guntur) The petitioner failed to file monthly GSTR-3B returns and did not pay the necessary GST, which the AP High Court ruled constitutes suppression of facts. Under Explanation 2 to Section 74, suppression includes failing to declare required information in statutory returns or reports. Non-filing of returns amounts to suppression of facts, but a penalty under Section 74 requires that this suppression be willful. The petitioner argued that they couldn’t pay taxes due to non-payment by their sole client, but the evidence showed that some payments were received. The appellate authority found that the petitioner had no valid impediment and determined that the suppression was willful, upholding the penalties. Additional penalties were automatically imposed due to the finding of willful suppression. The Supreme Court reviewed and upheld the AP High Court’s decision, declining to interfere with the judgment. https://whatsapp.com/channel/0029Va6mSySL7UVc3qWITX3w