The section declares the offences that attract penalty as a consequence, apart from the requirement to pay the tax and applicable interest.
Some of the offences listed under this section may also attract prosecution under section 132 but that depends on the gravity of the offence defined in that section.
This section is basically divided into four sub-sections-
(1) The first sub-section prescribes 21 types of offences, any one of which, if committed, can attract penalty of ten thousand rupees or equal to the amount of tax involved, whichever is higher.
(2) Sub-section 1A prescribes that penalty can levied in case of specified offences, on such persons satisfying both the following conditions:
(3) the said person is the instance for conduct of a transaction and
(4) and also retains the benefit from occurrence of the said transaction
1. Supplies any goods and/ or services-
a. Without issue of any invoice, or
b. Issues an incorrect/ false invoice in respect of such supply
2. Issues an invoice (or bill of supply) without supply of goods or services or both in violation of the provisions of the Act/ Rules. (Means Bogus bills)
3. Collects any amount as tax but fails to deposit the same with the Government beyond a period of three months from due date.
4. Collects any tax in contravention of law but fails to deposit the same with the Government beyond a period of three months from due date. Collection of taxes in contravention of law would also mean where a registered person collects 18% as taxes but the actual tax rate is 12%
5. Fails to –
(a) Deduct tax/ deduct appropriate tax, as per section 51
(b) deposit the tax deducted with the appropriate Government
6 Fails to –
(a) collect tax/ collect appropriate tax as per provisions of section 52
(b) deposit the tax collected with the appropriate Government.
7. Takes or utilizes input tax credit without actual receipt of goods or services either fully or partially in contravention of provisions of Act/ Rules.
8. Fraudulently obtains refund of tax.
9. Takes or distributes input tax credit in contravention of section 20, or the rules made thereunder.
10. With an intention to evade payment of tax-
(a) falsifies or substitutes financial records, or
(b) produces fake accounts or documents, or
(c) furnishes any false information or return.
11. Fails to obtain registration.
12. Furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently.
13. Obstructs or prevents any officer in discharge of his duties
14. Transports any taxable goods without the cover of specified documents.
15. Suppresses his turnover leading to evasion of tax.
16. Fails to keep, maintain or retain books of account and other documents as specified in law.
17. Fails to furnish information or documents called for by an officer or furnishes false information or documents during any proceedings.
18. Supplies, transports or stores any goods which he has reason to believe are liable to confiscation.
19. Issues any invoice or document by using the registration number of another taxable person.
20. Tampers with or destroys any material evidence or document
21. Disposes off or tampers with any goods that have been detained, seized, or attached under this Act.
Sub-section 1A- Penalty equivalent to amount of tax evaded or ITC availed or passed on will be levied on a person committing any of the following offences.
This provision will apply if such person is a beneficiary and happening of such a transaction is on his request,
Sub-Section -2- Registered person who supplies any goods or services or both on which any tax has not been paid or short-paid or erroneously refunded, or where the input tax credit has been wrongly availed or utilised, for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of Rs 10,000/- or 10% of the tax due from such person, whichever is higher.
Registered person who supplies any goods or services or both on which any tax has not been paid or short-paid or erroneously refunded, or where the input tax credit has been wrongly availed or utilised, for reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of ` 10,000/- or tax due from such person, whichever is higher.
Sub-section 3– Penalty up to Rs. 25,000/- where any person aids or abets any of the offences specified below-
Queries/doubts related to above mailed at [email protected].