FAQ on Offences, Penalties, Prosecution & Compounding Under GST
FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions. ||FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions. ||FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions. ||FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions. ||FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions. ||FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions. ||FAQ on Offences, Penalties, Prosecution & Compounding Under GST. Various Queries related to Offences, Penalties, Prosecution & Compounding as per Goods and Service tax act 2017 with there solutions.

FAQ on Offences, Penalties, Prosecution & Compounding Under GST
Q 1. What are the prescribed offences under CGST/SGST Act? Ans. The CGST/SGST Act codifiesthe offences and penalties in Chapter XVI. The Act lists 21 offences in section 122, apart from the penalty prescribed under section 10 for availing compounding by a taxable person who is not eligible for it. The said offences are as follows: -- 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 exceeding three months;
- 4) Not paying tax collected in contravention of the MGL for a period exceeding 3 months;
- 5) Non deduction or lower deduction of tax deducted at source or not depositing tax deducted at source under section 51;
- 6) Non collection or lower collection of or nonpayment of tax collectible at source under section 52;
- 7) Availing/utilizing input tax credit without actual receipt of goods and/or services;
- 8) Fraudulently obtaining any refund;
- 9) Availing/distributing input tax credit by an Input Service Distributor in violation of Section 20;
- 10) Furnishing false information or falsification of financial records or furnishing offake accounts/ documents with intent to evade payment of tax;
- 11) Failure to register despite being liable to pay tax;
- 12) Furnishing false information regarding registration particulars either at the time of applying for registration or subsequently;
- 13) Obstructing or preventing any official in discharge of his duty;
- 14) Transporting goods without prescribed documents;
- 15) Suppressing turnover leading to tax evasion;
- 16) Failure to maintain accounts/documents in the manner specified in the Act or failure to retain accounts/documents for the period 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 the course of 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.
- a temporary punishment or a sum of money imposed by statute, to be paid as punishment for the commission of a certain offence;
- a punishment imposed by law or contract for doing or failing to do something that was the duty of a party to do.
- no penalty is to be imposed without issuance of a show cause notice and proper hearing in the matter, affording an opportunity to the person proceeded against to rebut the allegations levelled against him,
- the penalty is to depend on the totality of the facts and circumstances of the case,
- the penalty imposed is to be commensurate with the degree and severity of breach of the provisions of the law or the rules alleged,
- the nature of the breach is to be specified clearly in the order imposing the penalty,
- the provisions of the law under which the penalty has been imposed is to be specified.
- any minor breach (minor breach has been defined as a violation of the provisions in a case where the tax involved is less than Rs.5000), or
- a procedural requirement of the law, or
- an easily rectifiable mistake/omission in documents (explained in the law as an error apparent on record) that has been made without fraudulent intent or gross negligence.
- The amount oftax evaded, fraudulently obtained as refund, availed as credit, or not deducted or collected or short deducted or short collected, or
- A sum of Rs. 10,000/-.
- 10% of the tax short paid, or
- Rs.10,000.
- aids or abets any of the 21 offences
- deals in any way (whether receiving, supplying, storing or transporting) with goods that are liable to confiscation,
- receives or deals with supply of services in contravention of the Act,
- fails to appear before an authority who has issued a summon,
- fails to issue any invoice for a supply or account for any invoice in his books of accounts
- supplies or receives any goods in contravention of any provision of this Act and such contravention results in evasion of tax payable under the Act, or
- does not account for any goods in the manner required under the Act, or
- supplies goods that are liable to tax under the Act without applying for registration, or
- uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of CGST/SGST Act (unless used without knowledge of owner)
- contravenes any provision of the Act/Rules with the intention of evading payment of tax
- Making a supply without issuing an invoice or upon issuance of a false/incorrect invoice;
- Issuing an invoice without making supply;
- Not paying any amount collected as tax for a period exceeding 3 months;
- Availing or utilizing credit of input tax without actual receipt of goods and/or services;
- Obtaining any fraudulent refund;
- evades tax, fraudulently avails ITC or obtains refund by an offence not covered under clause (1) to (5);
- Furnishing false information or falsification of financial records or furnishing of fake accounts/ documents with intent to evade payment of tax;
- Obstructing or preventing any official in the discharge of his duty;
- Dealing with goods liable to confiscation i.e. receipt, supply, storage or transportation of goods liable to confiscation;
- Receiving/dealing wit h supply of ser vices in contravention of the Act;
- Failing to supply any information required of him under the Act/Rules or supplying false information;
- Attempting to commit or abetting the commission of any of the offences at (a) to (l) above.
Offence involving– | Punishment (Imprisonment extending to-) |
Tax evaded exceeding Rs. 5 crore or repeat offender250 lakh | 5 years and fine |
Tax evaded between Rs. 2 crore and Rs.5 crore | 3 years and fine |
Tax evaded betweenRs.1 crore and Rs.2 crore | 1 years and fine |
|
6 months |
- all offences where the evasion of tax is less than Rs.5 crores shall be non-cognizable and bailable,
- all offences where the evasion of tax exceeds Rs.5 crores shall be cognizable and non- bailable.
- the act is intentional;
- the act and its implications are understood and controllable;
- the person committing the act was not coerced and even overcomes hurdles to the act committed;
- the person believes or has reasons to believe that the act is contrary to law.
- has been committed with the consent/ connivance of, or
- is attributable to negligence of—
- Offences numbered 1 to 6 of the 12 major offences (outlined in Q. 16 above), if the person charged with the offence had compounded earlier in respect of any of the said offences;
- Aiding/abetting offences numbered 1 to 6 of the 12 major offences, if the person charged with the offence had compounded earlier in respect of any of the said offences;
- Any offence (other than the above offences) under any SGST Act/IGST Act in respect of a supply with value exceeding Rs.1 crore, if the person charged with the offence had compounded earlier in respect of any of the said offences;
- Any offence which is also an offence under NDPSA or FEMA or any other Act other than CGST/SGST;
- 50% of tax involved, or
- Rs.10,000.
- 150% of tax involved or
- Rs.30,000.
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- FAQ on Offences, Penalties