Chapter
XIX: Offences and penalties

122

122(1): Penalty of higher of Rs.10,000 or amount which is due under below
offences shall be paid by a person who:

   
Does not issue or issues
incorrect or false invoice

   
Issues any
invoice or document by
using the registration no. of another person

   
Issues invoice without supply & avails ITC on such invoice

   
Suppresses turnover or
fraudulently obtains refund of tax

   
Collects any tax which is not paid to the government within 3 months from due date of payment

   
Deducts or collects, lesser amount than required u/s 51(1) or 52(1) or fails to pay u/s 51(2) or
52(3)

   
Takes or
distributes ITC in
contravention of
section
20

   
Falsifies or fails to retain financial records, accounts or documents

   
Fails to furnish or
furnishes
false
information
or return or documents

   
Fails to obtain registration even though liable to do so

   
Transports any
taxable goods
without the cover of documents

   
Supplies,
transports or stores goods which are
liable to confiscation

   
Tampers or destroys any
material
evidence or document or goods that have been detained, seized, or
attached

   
Obstructs or prevents any officer in discharge of his duties

122(2): Supplier
of any supplies on which any
tax has not been paid or
short-paid or
wrongly
refunded, or ITC
has been wrongly
availed or utilized shall be liable to a penalty equal to:

Involving fraud or willful misstatement or suppression of facts to evade tax

Higher of 10,000 or the tax due

Other
cases

Higher of 10, 000 or 10% of the tax due

122(3): Penalty
up to Rs.25,000 shall be paid if a person:

   
Aids or abets any of
the offences specified
122(1)

   
Possesses,
transports, stores, supplies , purchases etc.
goods which he believes are liable to confiscation

   
Receives
or deals with supply of
services which believes are in
contravention of any provisions

   
Fails to appear before the officer of central tax when summoned

   
Fails to issue invoice as per provisions or invoice is not accounted in the
books

 

Offence

Penalty (Rs.)

Maximum (Rs.)

123

Not filing return u/s 150 within specified period

100
per day

5000

124

Failure to furnish any information or return u/s 151 or furnishing of false information

Up
to 10000 and 100 per day

25000

125

Contravention of any provisions of this Act or any rules for which no
penalty is separately provided

25000

126

Penalty is not imposed for minor breaches (tax is less than Rs.5, 000) of tax regulations or procedural
requirements & any omission or mistake in documentation which is easily
rectifiable & made without fraudulent intent or gross negligence.

128

The
late fee payable
u/s 47
has been reduced for the
following GSTRs to
Rs. 25/- per day. If Tax liability for the month is Nil, fee is Rs. 10/- per day.

Note:
SGST Act also prescribes the same amount of late fee. Therefore, total late
fee payable will be twice of the above said amounts.

GSTR-3B (No
late fee
is applicable for the
month of
July,
August & September 2017
)

Notification No. 64/2017

GSTR-1

Notification No. 4/2018

GSTR-4

Notification No. 73/2017

GSTR-5

Notification No. 5/2018

GSTR-6

Notification No. 7/2018

The
late fee is waived in following cases:

  
GSTR-3B for October 2017 to April 2018 – If FORM GST TRAN-1 is submitted
but not filed within 27-Dec-17. Provided, such taxpayer has to file FORM GST
TRAN-1 within 10-May-18 & GSTR-3B within 31-May-18. [
22/2018]

   
The late
fee paid by taxpayers would be waived in cases specified in
Notification No. 41/2018

129

If
any person transports or stores
goods in transit in contravention of the provisions of this Act or rules, such goods &
conveyance used for transport & documents relating to such goods &
conveyance shall be liable to detention or seizure & shall be released,
on payment of penalty given below or Rs.25, 000, whichever is less, tax
payable & providing security equal to penalty & tax payable.

Person who pays such tax & penalty

Type of goods

Penalty % of the tax payable

Owner

Taxable
goods

Exempted
goods

100%

2%

Transporter

Taxable
goods

Exempted
goods

50%

5%

If
the transporter or owner fails to pay such amount within 7 days of such
detention or seizure, further proceedings shall be initiated u/s 130.

Note: Total Penalty is the sum of the penalties
leviable under other GST Acts.

130

If
a person commits any of the following offences, then such goods or
conveyances is liable to confiscation & penalty u/s 122 shall be paid:

   
Supplies
or receives any
goods
in contravention
of provisions

   
Does not account for goods on
which he is liable to pay tax

   
Supplies any goods liable to
tax
without having applied for registration

   
Contravenes any provisions
with intent to evade tax

   
Uses any
conveyance for
transportation of goods in contravention of
provisions (Unless the owner of the conveyance proves that it was so used
without his knowledge)

132

Person
commits or
attempts
to commit or abets any of the following offences:

   
Does not issue invoice

   
Issues invoice without supply & avails ITC on such invoice

   
Collects any tax which is not paid to the government
within 3 months from due date of payment

   
Evades tax or fraudulently avails ITC or refund

   
Possesses,
transports, stores, supplies , purchases etc.
goods which he believes are liable to confiscation

   
Receives
or deals with supply of
services which believes are in
contravention of any provisions

   
Fails to
supply
information or furnishes false information without intention to avoid tax

Tax evaded or ITC wrongly availed or refund wrongly taken
exceeds

Fine &/or imprisonment up to

500lakh

5
years

200
lakh

3
years

100
lakh

1
year

Person
who commits or abets commission of following offences shall be punishable
with imprisonment up to
6 months or with fine or both:

   
Falsifies financial records,
accounts or documents or furnishes false information

   
Obstructs or prevents any officer in the discharge of his duties

   
Tampers with or destroys any
material
evidence or documents

137

Persons deemed to be guilty of offence:

     
Persons in charge of & responsible for the conduct of a body corporate, at the time of offence

     
Any
director, manager or
officer of a company if offence has been committed with the consent or connivance
of, or due to negligence of such person