| |
|
|
The 21 offenses listed below are subject to a penalty of 10,000 rupees or the amount of tax involved, whichever is greater [Sec 122(1)]:
1. Supplying goods and/or services without issuing an invoice or issuing an incorrect or false invoice
2. Issuing an invoice without supplying goods and/or services
3. Collecting tax but failing to remit it to the government within three months of the due date
4. Collecting tax in contravention of law but failing to remit it to the government within three months of the due date
5. Failing to deduct tax or deposit the tax with the government
6. Failing to collect tax or collecting too little tax from the supplier at the time of payment, or failing to pay the tax to the government — applies to eCommerce operators
7. Taking full or partial input tax credit without actual receipt of goods and/or services
8. Obtaining a refund of tax by fraud
9. Distributing an input tax credit other than in the manner prescribed
10. Falsifying or substituting financial records, producing fake accounts and/or documents, or furnishing a false return
11. Failing to obtain registration (if registration is required)
12. Furnishing false information during registration
13. Obstructing an officer from the discharge of duties
14. Transporting taxable goods without documents
15. Suppressing turnover leading to evasion of tax
16. Failing to maintain books of accounts and documents
17. Failing to furnish information to CGST/SGST officers or furnishing false information
18. Supplying and/or storing goods which one has reason to believe are liable for confiscation
19. Issuing an invoice or document by using the identification number of another person
20. Tampering with material evidence
21. Tampering with any goods that have been detained, seized, or attached
In addition to any action that may be taken under Sec. 122, failure of an electronic commerce operator to furnish all required information could lead to penalties of up to 25,000 rupees.
The Central Goods and Services Tax Act allows for a reduction in penalties when a person fails to pay or underpays the tax owed erroneously, rather than deliberately by fraud, wilful misstatement, or the suppression of facts. In such cases, penalties could be reduced to 10 percent of the tax owed, subject to a minimum of 10,000 rupees. A similar abatement of penalties could be available when input tax credits are wrongly availed or utilized, or when the tax is erroneously refunded on the supply of goods or services. [Sec 122(2a)] |
|
|
|
|