{"id":2303,"date":"2020-01-22T12:06:47","date_gmt":"2020-01-22T12:06:47","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=2303"},"modified":"2021-02-22T12:53:59","modified_gmt":"2021-02-22T07:23:59","slug":"gst-penalty-offences-and-appeals-under-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-penalty-offences-and-appeals-under-gst\/","title":{"rendered":"GST: Penalty, Offences and Appeals Under GST Act 2017"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Goods and Services Tax Act <strong><em>(GST)<\/em><\/strong> is introduced as a\nsingle tax in the year <strong><em>2017<\/em><\/strong> all over the nation. It has\nensured the legal requirements of small and large scale businesses which are expressly\nspecified in the Act. However, the non-compliances of the provisions have the\npenalties mentioned in the GST act itself. There are offences under <strong><em>section\n122 to section 138<\/em><\/strong> related to GST, and for same GST penalty is provided\nin the Act. In the subsequent paragraphs, we will discuss the <strong><em>GST\npenalty and offences<\/em><\/strong> related to it. And Further explanation regarding appeals\ncontesting process to the appropriate authority. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Offences under the GST Act<\/h3>\n\n\n\n<p>Offences related to GST are given under <strong>section 122 of Chapter XIX<\/strong> of the GST Act, and if the following is\ndone by the taxable person will be considered as an offender for the purpose of\nthis Act. The following are covered as GST offences:<\/p>\n\n\n\n<ul><li>a taxable person supplies goods or services <strong><em>without an invoice<\/em><\/strong> or by issuing a <strong><em>false invoice <\/em><\/strong><\/li><li>bill or invoice is issued <strong><em>without any supply<\/em><\/strong> of goods and services<\/li><li>the amount collected as a tax but is <strong><em>not paid to the government<\/em><\/strong> within three months of the due date of payment<\/li><li>any amount <strong><em>collected as tax illegally<\/em><\/strong> and the same is not paid to the government<\/li><li>the taxable person <strong><em>fails to deduct the tax<\/em><\/strong> or deducted it less than the real amount<\/li><li>the taxable person collects the tax or <strong><em>collected tax more than the real amount<\/em><\/strong><\/li><li>he takes or utilises input tax credit <strong><em>without any actual receiving<\/em><\/strong> of the goods and services<\/li><li>obtain a <strong><em>refund of tax fraudulently<\/em><\/strong><\/li><li>distributes or takes input tax credit with <strong><em>non-compliance of section 20<\/em><\/strong> of the Act <\/li><li>he produces <strong><em>fake accounts or falsely make financial records<\/em><\/strong> or gives false information intending to tax evasion under this Act <\/li><li>If <strong><em>not obtain GST registration<\/em><\/strong><\/li><li>provided <strong><em>false information for <\/em><\/strong><em><a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a><\/em><\/li><li>he makes <strong><em>any obstruction for an officer in charge<\/em><\/strong> under this Act <\/li><li>any taxable <strong><em>goods transferred without any cover of documents<\/em><\/strong><\/li><li><strong><em>shows less turnover<\/em><\/strong> than actual for tax evasion<\/li><li><strong><em>fails to maintain, keep or retain books of accounts<\/em><\/strong> <\/li><li><strong><em>fails to provide the documents and information<\/em><\/strong> to the officer in charge<\/li><li><strong><em>transports, supplies or stores without any legal documents<\/em><\/strong><\/li><li>issues an invoice by <strong><em>using the name of any other GST registered person<\/em><\/strong><\/li><li><strong><em>tampers or destroys the evidence<\/em><\/strong> required under this Act <\/li><li><strong><em>disposed of any goods that are detained or seized<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/impact-of-gst-rate-on-indian-economy\/\">Pragmatic Impact of GST Rate on Indian Economy<\/a><\/mark><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-penalty-offences-and-appeals-under-gst\/#GST_penalty_regarding_offences\" >GST penalty regarding offences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-penalty-offences-and-appeals-under-gst\/#Other_Offences_and_GST_Penalty\" >Other Offences and GST Penalty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-penalty-offences-and-appeals-under-gst\/#Appeals_made_under_the_GST_Act\" >Appeals made under the GST Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-penalty-offences-and-appeals-under-gst\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_penalty_regarding_offences\"><\/span>GST penalty regarding offences <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the taxpayer is found guilty of the above mention\noffences under section 122, then,<\/p>\n\n\n\n<ul><li>he will be liable to pay <strong><em>Rs 10000 as GST penalty<\/em><\/strong>,\nor, <\/li><li>the <strong><em>equivalent amount of tax evasion<\/em><\/strong>,\nor,<\/li><li>the <strong><em>amount deducted for the purpose of tax\nevasion<\/em><\/strong>, or,<\/li><li>the <strong><em>amount liable to be collected as tax<\/em><\/strong>,\nor,<\/li><li><strong><em>refund of the amount which was claimed\nfraudulently as GST penalty<\/em><\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Offences_and_GST_Penalty\"><\/span>Other Offences and GST Penalty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Types of offences<\/strong>\n  <\/td><td>\n  <strong>GST penalty<\/strong>\n  <\/td><\/tr><tr><td>\n  A taxable person who\n  supplies goods and services has not paid tax or less paid or wrongly utilised or availed \n  <ul>\n<li>for the <strong><em>purpose of fraud or tax evasion<\/em><\/strong> or willful misrepresentation<\/li>\n<li>for the <strong><em>purpose other than<\/em><\/strong> of the fraud or tax evasion or willful misrepresentation<\/li>\n<\/ul>\n  \n  <\/td><td>\n \n  <strong><em>Rs 10000 or the amount of\n  the tax<\/em><\/strong> due (the higher amount is to pay)\n  <strong><em>Rs 10000 or 10% of the\n  amount of tax<\/em><\/strong> due ( the higher amount is to pay)\n  <\/td><\/tr><tr><td>\n <ul>\n<li>Abetting and aiding to any offence under section 122, or,<\/li>\n<li>Transports, deposits, conceals, purchases, removes, keeps or supplies any goods or services which is prohibited under this Act, or,<\/li>\n<li>Receives any supplies in contravention to any provision under this Act, or,<\/li>\n<li>Fails to appear before the central tax officer, or,<\/li>\n<li>Fails to provide or issue an invoice, or,<\/li>\n<li>Fails to maintain or keep books of accounts<\/li>\n<\/ul>\n  \n  \n  \n  \n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  The GST penalty for\n  the mention offences is for <strong><em>Rs 25000<\/em><\/strong> \n  <\/td><\/tr><tr><td>\n  Any person under <strong><em>section\n  123<\/em><\/strong> \n  <ul>\n<li>fails in filing GST returns &nbsp;within a specified duration of a time period<\/li>\n<\/ul>\n  \n  <\/td><td>\n  &nbsp;\n  GST penalty of <strong><em>Rs\n  100 per day<\/em><\/strong> till the date the return is filed which may <strong><em>extend\n  to Rs 5000<\/em><\/strong> \n  <\/td><\/tr><tr><td>\n  Any person under <strong><em>section\n  124<\/em><\/strong>\n  <ul>\n<li>Without any reason fails to provide information regarding GST returns, or,<\/li>\n<li>Intentionally provides false information of GST returns<\/li>\n<\/ul>\n  <\/td><td>\n  &nbsp;\n  GST penalty of <strong><em>Rs\n  10000<\/em><\/strong> and will continue as <strong><em>Rs 100&nbsp;&nbsp;\n  per day<\/em><\/strong> till the offence continues (<strong><em>maximum limit up to Rs 25000<\/em><\/strong>)\n  \n  <\/td><\/tr><tr><td>\n  Any person under <strong><em>section\n  125<\/em><\/strong>\n  Contravenes with the\n  provisions of this Act \n  <\/td><td>\n  GST penalty if not\n  otherwise provide then <strong><em>Rs 25000 for that offence<\/em><\/strong>\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\">Minor Breaches of tax<\/h3>\n\n\n\n<p>Any of the GST penalty cannot be imposed on any person in case of minor mistake or omission of documentation and also in case of procedural requirements which can be rectified under <strong><em>section 126<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/126_(number)\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">[1]<\/a><\/sup><strong><em>,<\/em><\/strong> provided, that does not involve any fraudulent intention or gross negligence.&nbsp; <\/p>\n\n\n\n<p><strong>The minor breach of tax excludes GST penalty in the following circumstances:<\/strong><\/p>\n\n\n\n<ul><li>Involvement of the amount up to Rs 5000<\/li><li>Omission or mistake that is rectifiable<\/li><li>GST Penalty depends according to the facts and\ncircumstances of the case<\/li><li>No GST penalty without an opportunity of being\nheard<\/li><li>Officer has to check the specified breach before\nimposing the penalty<\/li><li>When the taxpayer expressly discloses the facts\nof breach of laws and regulations, then an officer can mitigate the penalty <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appeals_made_under_the_GST_Act\"><\/span>Appeals made under the GST Act <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The taxpayer can make the appeals against the order passed by the officer in charge related to GST penalty and offences imposed upon him. The first appeal can be made to the <strong><em>First Appellate Authority<\/em><\/strong> against the order made by adjudicating authority. The second appeal is made to <strong><em>Appellate Tribunal <\/em><\/strong>by the taxpayer. Further, if he is not satisfied, then he can go to the <strong><em>High Court<\/em><\/strong>. The final and last appeal can be made to the <strong><em>Supreme Court<\/em><\/strong> of India in case the taxpayer is dissatisfied by the decision of the subordinate courts. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"631\" height=\"115\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/Appeals-made-under-the-GST-Act.png\" alt=\"Appeals made under the GST Act\" class=\"wp-image-2304\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/Appeals-made-under-the-GST-Act.png 631w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/Appeals-made-under-the-GST-Act-300x55.png 300w\" sizes=\"(max-width: 631px) 100vw, 631px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST is a new act requires a detailed study about the provisions and what if one does not follow the provisions under this Act. The GST penalties and offences are expressly described under this Act. To avoid the GST penalty and long litigation process, one must require to share the issues and queries with team <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>. We have the team of experts which provide taxpayer clarification regarding the procedures and help them in<strong> <\/strong>Online GST registration as well. &nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/obtain-gst-registration-in-india\/\">How To Obtain GST Registration in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and Services Tax Act (GST) is introduced as a single tax in the year 2017 all over the nation. It has ensured the legal requirements of small and large scale businesses which are expressly specified in the Act. However, the non-compliances of the provisions have the penalties mentioned in the GST act itself. [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":2310,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[273],"acf":{"service_id":"132"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":6278,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2303"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=2303"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2303\/revisions"}],"predecessor-version":[{"id":26377,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2303\/revisions\/26377"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/2310"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=2303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=2303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=2303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}