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TMI BlogPENALTIES UNDER GST LAWX X X X Extracts X X X X X X X X Extracts X X X X ..... the Government beyond a period of three months from the date on which such payment becomes due; (iv) collection of any tax in contravention of the provisions of the CGST Act, 2017 and failure to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (v) failure to deduct the tax (TDS) in accordance with the provisions of sub-section (1) of Section 51 of the CGST Act, 2017 or deduct an amount less than the amount required to be deducted under the said sub-section, or failure to pay to the Government the amount deducted as tax; (vi) failure to collect tax (TCS) in accordance with the provisions of sub-section (1) of Section 52 of the CGST Act, 2017 or collect an amount less than the amount required to be collected under the said sub-section or failure to pay to the Government the amount collected as tax; (vii) availment or utilisation of input tax credit without actual receipt of goods or services or both either fully or partially; (viii) obtaining refund of tax fraudulently; (ix) availment or distribution of input tax credit by Input Service Distributor (ISD) in contravention of Section 20 of the CGST Act, 2017; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt OR (iii) Tax not collected or short collected or collected but not paid to the Government OR (iv) Input tax credit availed of or passed on or distributed irregularly OR (v) the refund claimed fraudulently. Whichever is higher. S. No. Nature of Offence Committed (i) Supplying any goods or services or both without issue of any invoice or an incorrect or false invoice. (ii) Issuing any invoice or bill without supply of goods or services or both in violation of GST. (iii) Collecting any amount as tax but failing to pay the same to the Government beyond a period of three months from the due date. (iv) Collecting any tax but failing to pay the same to the Government beyond a period of three months from the due date. (v) Failing to deduct tax, or deducting an amount which is less than the amount required to be deducted, or failing to pay deducted tax to the Government. (vi) Failing to collect tax in accordance, or collecting an amount which is less than the amount required to be deducted, or failing to pay deducted tax to the Government. (vii) Taking or utilizing input tax credit without actual receipt of goods or services or both either fully or partially, in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or services or both without issue of any invoice or an incorrect or false invoice. (ii) Issuing any invoice or bill without supply of goods or services or both in violation of GST. (vii) Taking or utilizing input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of provisions of CGST Act, 2017 & Rules thereunder. (ix) Taking or distributing input tax credit in contravention of provisions of the CGST Act, 2017 & Rules thereunder. 6.6 Section 122(1B) of the CGST Act, 2017 prescribes penalty of ten thousand rupees, or an amount equivalent to the amount of tax involved, whichever is higher, on the e-commerce operator (Substituted (w.e.f. 01.10.2023) by Section 144 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.) [who is liable to collect tax at source under Section 52] if he allows supply of goods or services through their platform, by an unregistered person other than a person exempted from registration, allows an inter-State supply of goods or services by a person who is not eligible to make such inter-State supply or fails to furnish the correct details in the statement to be furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Fails to appear before the officer of Central tax, when issued with a summon for appearance to give evidence or produce a document in an inquiry; e. Fails to issue invoice in accordance with the provisions of this Act or the rules made thereunder or fails to account for an invoice in his books of account. 6.10 Penalty for failure to furnish information return: (I) It is mandatory for all taxable persons to provide information return as per Section 150 of the CGST Act, 2017. If the person fails to furnish the return within the specified duration, then such person needs to pay penalty at the rate of Rs. 100/- per day for the period during which the failure to provide such information return continues, subject to maximum of Rs. 5000/-, as per Section 123 of the CGST Act, 2017. (II) As per Section 150(1) of the CGST Act, 2017, the following persons 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 and/or services or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for failure to furnish statistics - Commissioner is empowered under Section 151 of CGST Act, 2017 to collect the statistics relating to any matters dealt with under the Act. He may direct the person to furnish the information or return to collect the statistics that he feels necessary. If such person fails to provide the information called for without reasonable cause or provides any false information or returns wilfully, then as per Section 124 of the CGST Act, 2017 he shall be liable to pay penalty up to Rs. 10,000/-. If the offence continues, then the penalty may further extend to Rs. 100/- each day after the first day during which the offence continues, subject to maximum of Rs. 25,000/-. 6.12 General penalty - If in respect of any violation, contravention, omission or commission under GST a penalty is not specified under any other provision of the CGST Act, 2017 then a General Penalty of an amount up to Rs. 25,000/- can be imposed on the person. 6.13 Violations in respect of which no Penalty is applicable - In case of certain instances no GST penalties are applicable despite some provision being violated/contravened, but these GST offences can incur interest at a spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not covered under proceedings related to Assessment of non-filers (Sec, 62), Assessment of unregistered persons (Sec. 63), Summary Assessment (Sec. 64), Demand of tax/ITC on account of reasons other than fraud, suppression, etc. (Section73), Demand of tax/ITC on account of reasons of fraud, suppression, etc. (Section 74), Detention, Seizure, and release of goods and conveyance (Sec. 129), Confiscation of goods and conveyance (Sec. 130). Power to levy penalty is with the Proper Officer. 11. 128 Waiver of penalty referred in Section 122, 123 and 125 and late fee for delay in filing returns. Power to waive penalty and late fee with Government on recommendation of GST Council, for the notified class of taxpayers. 12. 129 Release of goods and conveyance under detention or seizure: (A) Where owner comes forward for payment of tax and penalty. (B)Where the owner does not come forward for payment of tax and penalty (a) In case of taxable goods - Penalty equivalent to 200% of the tax payable (b) In case of exempted goods - Penalty 2% of the value of goods or Rs. 25,000/-, whichever is less (a) In case of taxable goods - Penalty equivalent to 50% of value of goods or 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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