Penalty  for certain offences Under Section-122

Any person who commits any of the following offences is liable to pay a penalty of –

  • Rs. 10,000
  • 100% of the amount of tax evaded, ITC availed/ passed or distributed wrongly, refunded claim fraudulently, TDS not deducted/deducted but not paid, TDS not collected/ short collected/collected but not paid.                                                                                                                                Whichever is higher.

Offences Under Section- 122

  • Supplies without the issue of the invoice or issue of an incorrect or false invoice.
  • Collect tax but fails to pay beyond three months from the due date.
  • Fails to deduct/ deduct less/fails to pay TDS.
  • Takes or utilize ITC without actual receipt of supply, against Act/Rules.
  • Takes/ distribute ITC in contravention of Sec 20 and the rules.
  • Falsifies/ substitutes financial record or produce fake accounts/documents or furnished any false information/ return with an intention to evade payment of tax.
  • Issue invoices/bill without supply in violation of Act/ Rules.
  • Collects tax against provision but fails to pay beyond three months from the due date.
  • Fails to collect/ collect less/ fails to pay TCS.
  • Fraudulently obtains a refund.
  • Fails to obtain registration even though liable.
  • Furnishes any false information wrt registration particular at the time of applying for registration or subsequently.
  • Obstructs/ prevents officer in the discharge of his duty.
  • Transport taxable goods without the cover of stratified documents(invoice/ E-Waybill/ challan )
  • Suppresses his turnover leading to evasion of tax.
  • Fails to keep/ maintain/ retain/ books of account and other documents as per Act/ Rules.
  • Fails to furnish information/ documents called for by an officer as per Act/ Rules or furnishes false information/ document during any proceedings.
  • Supplies/ transport/ stores any goods which he has reasons to believe are liable to confiscation under this Act.
  • Issue invoice/ documents by using the registration number of another RTP.
  • Tampers with/ destroy any material evidence/ document.
  • Disposes off/tampers with goods that have been detained/ seized/ attached.

Late Filing

If any taxpayer does not file his liable tax even after crossing the due date he/she would be attracted with a penalty called late fee.The late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day*. The maximum is Rs. 5,000. There is no late fee on IGST in case of delayed filing.

Along with the late fee, interest has to be paid at 18% per annum. It has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of filing to the date of payment.

For not filing

If you don’t file any GST return then subsequent returns cannot be filed. For example, if GSTR-2 return of August is not filed then the next return GSTR-3 and subsequent returns of September cannot be filed.  Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty