Article discusses Penalties under GST regime for failure to furnish returns i.e. details of Outward supplies or Inward supplies, Failure to furnish Annual return u/s 44, Electronic Commerce operator failing to furnish information required through Notice u/s 52(12), failure to pay tax or correct tax, Person covered u/s 150 for failure to furnish information return or wilfully furnishing false information return etc.

Section Wise Details of Penalty  payable under GST Provisions

Section Details of Failure/ Person liable to Pay Penalty
47(1) Any Registered person who fails to furnish returns i.e. details of Outward supplies or Inward supplies Late Fees of Rs 100 per day per Act subject to maximum of Rs. 5000/- per Act.
47(2) Failure to furnish Annual return u/s 44 Late Fees of Rs 100 per day per Act subject to maximum of .25% of turnover per Act.
52 Electronic Commerce operator failing to furnish information required through Notice u/s 52(12) Rs. 25,000/-
73/ 122(2)(a) Person liable to pay Tax if the same:

– not paid, or

– short paid, or

– erroneously refunded, or

– input tax wrongly availed, or utilized

for any reason other than fraud or wilful misstatement or suppression of facts.

Time Limit for issue of Notice (sec 73(2)):

– 33 months (i.e. 3 months prior to the time limit for issuance of order as per section 73(10)).

Time Limit for issuance of Order (sec 73(10)):

– 3 years from the due date of furnishing of Annual return for the relevant FY, or

– 3 years from the date of erroneous refund

– 0 (Zero) if amount due is paid with interest prior to or within 30 days of SCN.

– 10% of amount due or Rs. 10,000/- whichever is higher as per the adjudication order.

– 10% of amount due or Rs. 10,000/- whichever is higher if self assessed tax or amount collected as tax has not been paid within period of 30 days from the due dates of payment of such tax.

 

 

74/

122(2)(b)

Person liable to pay Tax if the same:

– not paid, or

– short paid, or

– erroneously refunded, or

– input tax wrongly availed, or utilized

by reason of fraud or wilful misstatement or suppression of facts.

Time Limit for issue of Notice (sec 74(2)):

– 54 months (i.e. 6 months prior to the time limit for issuance of order as per section 74(10)).

Time Limit for issuance of Order (sec 74(10)):

– 5 years from the due date of furnishing of Annual return for the relevant FY, or

– 5 years from the date of erroneous refund

– 15% if amount due is paid with interest prior to issuance of SCN.

– 25% of amount if the same is paid with interest within 30 days of issuance of SCN.

– 50 % of amount if the same is paid with interest within 30 days of issuance of adjudication order.

– 100% of amount due or Rs. 10,000/- whichever is higher

122(1) Any taxable person for the below 21 reasons:

i. Supplying goods or services without issue of any invoice or incorrect or false invoice;

ii. Issues any invoice without supplying any goods or services or both in violation of this Act or rules;

iii. Collects the tax but fails to deposit the same with Govt within 3 months of due date;

iv. Collects the tax in violation of this Act but fails to deposit the same with Govt within 3 months of due date.

v. Fails to deduct TDS & fails to deposit the TDS with Govt;

vi. Fails to deduct TCS & fails to deposit the TCS with Govt;

vii. Takes or utilizes ITC without actual receipt of goods or services.

viii. Obtains refund of tax fraudulently;

ix. Takes or distributed ITC in violation of law;

x. Falsification / substitution of records or production of false accounts/documents or furnishing of any false information or return with intention to evade payment of tax;

xi. Fails to take registration;

xii. Submission of false information for taking registration & subsequently ;

xiii. Obstructs or prevents any officer from discharge of his duties;

xiv. Transport any taxable goods without proper documents

xv. Suppresses turnover to evade tax;

xvi. Fails to maintain proper accounts & documents;

xvii. Fails to furnish information or documents in any proceedings

xviii. Supplies, transport, stores any goods which he knows are liable to confiscation under the Act.

xix. Issues any invoice or document using the registration number of another registered person;

xx. Tampers with, destroys any material evidence or document;

xxi. Disposes off or tampering with any goods that have been detained, seized or attached under the Act.

1. Rs. 10,000/- or

2. An amount equivalent to:

– Tax evaded or

– TDS not deducted or short TDS deducted or not deposited with Govt.

– TCS not collected or short TCS collected or not deposited with Govt.

– Wrong ITC availed or utilized

– Wrong ITC passed or distributed

– Wrong refund claimed

Whichever is higher.

 

 

 

 

 

122(3) Any person for the below 5 reasons:

a) Who aids or abets any offences u/s 122(1);

b) Acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying or purchasing or in any other manner deals with any goods which know or has reasons to believe are liable to confiscation under this Act.

c) Receives or is in any way connected with the supply or in any other manner deals with any goods which know or has reasons to believe are liable to confiscation under this Act;

d) Fails to appear before the officer on being summoned;

e) Fails to issue invoice or account for an invoice in his books of accounts as per the Act

Up to Rs. 25,000/-
123 Person covered u/s 150 for failure to furnish information return or wilfully furnishing false information return Rs 100 per day per Act subject to maximum of Rs. 5000/-.
 

124

Person covered u/s 151 for failure to furnish (statistics) information return or willfully furnishing false information return – Rs. 10000/- and

– In case of continuing default, Rs. 100/- per day subject to maximum of Rs. 25,000/-

125 General Penalty on any person for contravention of any provision of this Act for which no separate penalty is provided for Up to Rs. 25,000/-
126 Minor breaches of tax regulations or procedural requirements, any omission or mistake in documentation which is easily rectifiable and made without any fraudulent intention or gross negligence.

– A breach is minor breach if the amount of tax involved is less than Rs. 5,000/-

– A omission or mistake in document shall be considered as rectifiable if the same is an error apparent on the face or record.

 

No Penalty

 

129(1)

(Part-1)

Any person transports any goods or stores any goods during they are in transit in contravention of this Act. Release of seized or detained goods All such goods, such conveyance and documents pertaining to such goods and such conveyance shall be liable to detention or seizure.

On release of such seized or detained goods and conveyance

129(1)(a), (b) & (c)

(Part-2)

On release of such seized or detained goods and conveyance

 

A. Where the owner of goods comes forward for payment of such tax and penalty, then:

100% of applicable tax + penalty equal to 100% of applicable tax.

And

In case of exempted goods, then:

– 2% of value of goods or

– Rs. 25,000/-

whichever is less.

B. Where the owner of goods comes forward for payment of such tax and penalty, then:

50% of applicable tax.

And

In case of exempted goods, then:

– 5% of value of goods or

– Rs. 25,000/-

whichever is less.

20 of IGST Act Penalty if leviable under CGST Act and SGST Act or the UTCGST Act Sum total of penalties imposed under these Acts.

The author is a practising CA and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.

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