Select Your Location
The Indian government decided to launch GST with many objectives like simplification and bringing order in Indirect tax regime of the country. Also it aims for elimination of double taxation issue and summing up the myriad of indirect taxes in one Goods and Service Tax.
Along with all these reasons, one of the main reasons for the introduction of GST is to bring clarity in the tax collection system and elimination of tax evaders and offenders. However, there is no end to people to seek ways to avoid taxes and manipulation of laws. Here we will discuss offences and Penalty Provisions under GST.
In order to identify and discourage such offenders, provisions relating to such offences and penalties for such offences are mentioned in Chapter XIX of Central Goods and Service Tax Act, 2017.
Table of Contents
Section 122 of the CGST Act, 2017 specified 21 situations as offenses under the law. They are as mentioned below:
Offences relating to invoicing and Documentation:
Offences relating to Tax evasion:
Offences relating to Fraudulent Intent:
Offences related to Obstruction:
We have discussed the list of offences, now let’s try and understand the Penalty Provisions under GST for such offences by the authorities.
The taxpayer Registered under GST will be liable to pay penalty if he supplied any goods or services or both, but:
In order to decide how much penalty is to be charged, the intention behind such an offence is to be considered. On this basis, two situations are to be considered:
Any person who is not registered under GST will also be covered under the ambit of Penalty Provisions under GST if they commit any of the following offences:
Such a person will be liable to pay a penalty which can extend up to 25000 rupees as per the Penalty Provisions under GST. This penalty is irrespective of whether the person is registered under GST or not.
In case where a GST registered person is unhappy with penalties related order passed under the GST Act, then such person may appeal against such order or decision so passed. The appeal process operates in the similar way irrespective of the type of offence and penalty that is applicable.
The following kinds of appeals are available (in chronological order):
The first appellate authority is the first court of appeal where a person affected by an order, passed by the adjudicating authority, appeal.
Then comes appellate tribunal which is a quasi judicial body that mediates the disputes and hears appeals against orders of the first appellate authority.
High court is the next step of appeal for those contesting a decision declared by the appellate tribunal.
Finally, Supreme Court is the last resort for anyone seeking redressal for GST penalties or any other tax order. As per the penalty provisions under GST, Supreme Court’s judgement on penalties, jail sentences or fines are final.
These strict penalty provisions for GST were brought in order to prevent widespread tax evasion and corruption. In case you have any query related to GST laws, feel free to contact Enterslice.
Read our article:
Checklist of Different Types of Reviews / Audit in GST
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has recommend...
The objective of the enactment of the Prevention of Money-laundering Act, 2002, i.e. PMLA (the...
Tax planning is a continuing effort and a management strategy for ensuring the minimization of...
On 18th May 2023, the Securities Exchange Board of India (SEBI) released a Consultation Paper o...
Infrastructure and real estate have been regarded as India's "sunshine sector" since the turn o...
On 22nd May 2023, the Central Board of Direct Taxes (CBDT) issued a new circular under secti...
Are you human?: 7 + 1 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
GST is a destination based tax upon the destination or consumption of goods or services. Further GST is also applic...
02 Aug, 2021
The term “prosecution” means initiating legal proceedings against the offender. It is the process of creating f...
23 Sep, 2022
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!