• 1) Making a supply without invoice or with false/incorrect invoice
  • 2) Issuing an invoice without making supply
  • 3) Not paying tax collected for a period > 3 months
  • 4) Not paying tax collected in contravention of the Act for a period > 3 months
  • 5) Non deduction/lower deduction of or non-payment of TDS
  • 6) Non collection/lower collection of or non-payment of TCS
  • 7) Availing/utilizing ITC without actual receipt of goods/services
  • 8) Obtaining fraudulent refund
  • 9) Availing/distributing ITC by ISD in violation of Section 17
  • 10) Furnishing false information/falsification of financial records/production of fake accounts/documents with intent to evade payment of tax
  • 11) Failure to register despite being liable
  • 12) Furnishing false information regarding mandatory fields for registration
  • 13) Obstructing/preventing any official in discharge of his duty
  • 14) Transporting goods without prescribe documents
  • 15) Suppressing turn over leading to tax evasion
  • 16) Failure to maintain/retain accounts/documents for the period and in the manner specified in the Act
  • 17) Failure to furnish information/documents required by an officer in terms of the Act/Rules or furnishing false information/documents during any proceeding
  • 18) Supplying/transporting/storing any goods liable to confiscation
  • 19) Issuing invoice or document using GSTIN of another person
  • 20) Tampering/destroying any material evidence
  • 21) Disposing of /tampering with goods detained/seized/ attached under the Act

Quantum of penalties

  • Any taxable person committing any of the 21 offences liable to penalty which will be the higher of
    • The tax evaded/not deposited/refunded, etc. or
    • Rs. 10,000
  • Penalty extending to Rs. 25,000 for any person
    • abetting any of the 21 offences,
    • dealing with goods liable to confiscation
    • receiving/dealing with supply of services in contravention of the Act
    • failing to appear before an authority who has issued a summon
    • failing to issue/account for invoice required by law

Miscellaneous Penalties

  • Any registered taxable person repeatedly making short payment of tax (three short payment in three returns during any six consecutive tax periods) liable to penalty which will be the higher of
    • 10% of the tax short paid or
    • Rs. 10,000
  • Any person contravening any provision of the Act/Rules for which no penalty has been separately provided liable to penalty extending to Rs. 25,000
  • Goods and the conveyance liable to detention if goods
    • transported/stored (while in transit) in violation of the Act
    • being stored/supplied without being accounted for in the manner required by law
    • Detained goods to be released only after payment of tax, interest, penalty or furnishing of security equivalent to above amount
  • Ineligible for Composition-Penalty
  • Persons not eligible for compounding
    • Person liable to pay tax on reverse charge
    • Inter-state suppliers
    • Person having same PAN not electing to compound in some other location
    • Person whose aggregate turnover exceeds threshold limit.
  • Such person liable to penalty if he obtains permission for composition
  • Penalty to be
    • Equivalent to tax payable under the Act and
    • In addition to tax payable under the Act
  • Confiscation and Penalty
  • Goods shall be liable to confiscation if any person
    • supplies goods in contravention of this Act resulting in evasion of tax
    • does not account for any goods
    • supplies goods liable to tax without applying for registration
    • contravenes any provision of the Act/Rules with the intention to evade payment of tax
  • Confiscated goods liable to penalty
  • Penalty to be the higher of
    • The tax evaded or
    • Rs. 10,000
  • Title in confiscated goods to vest in Government and police officer to assist in taking possession of such goods
  • Owner/person in-charge of goods liable to confiscation to be given option for fine (not exceeding market price of confiscated goods) in lieu of confiscation
  • Any conveyance carrying goods without documents prescribed under the Act liable to confiscation
  • No confiscation if owner proves that it happened without his knowledge or convenience or that of his agent
  • If conveyance used for carrying goods/passengers for hire then owner of conveyance may be provided option to pay fine equal to tax payable on goods in lieu of confiscation
  • Confiscation/penalty to be without prejudice to any other punishment/action provided in the Act for the concerned offence
  • 1) Making a supply without invoice or with false/incorrect invoice
  • 2) Issuing an invoice without making supply
  • 3) Not paying tax collected for a period > 3 months
  • 4) Not paying tax collected in contravention of the Act for a period > 3 months
  • 5) Availing/utilizing ITC without actual receipt of goods/services
  • 6) Obtaining fraudulent refund
  • 7) Furnishing false information/falsification of financial records/production of fake accounts/documents with intent to evade payment of tax
  • 8) Obstructing/preventing any official in discharge of his duty
  • 9) Dealing with goods liable to confiscation
  • 10) Receiving/dealing with supply of services in contravention of the Act
  • 11) Failing to supply any information required of him under the Act/Rules or supplying false information
  • 12) Attempting to commit or abetting the commission of any of the above 11 offences