GST DUNIYA. (Part – 8)

GST DUNIYA. (Part – 8)

we are extremely sorry for the delay. There were some technical problems due to which we couldn’t post the updates but now we are back in action.

Hope you had read the previous parts of the GST Duniya series, if not, then read it from here:

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Part 7

Today we will discuss about Penalties and Prosecutions  in GST


Various Penalties and Prosecutions under GST regime are explained below:

First of all there is a need to understand,why penalty imposes on any person.And answer of this issue is when any person commits any offence means a person commits a act which is forbidden by law,then in such case penalty imposes on such person.

Various kinds of offences committed by person under GST are:

There are 21 offences listed under GST which are mentioned below:

  1. If a person does not issue invoice for supply or issues wrong invoice.Issuance of Wrong invoice means issue of invoice in which wrong amout or any other wrong detail is mentioned.
  2. If a person issued invoice without any supply.It means without supply of goods or services, business issue invoice.
  3. Issues Invoice using the identification number of another bonafide taxable person.
  4. Another offence under GST is commit at time of registration.It means providing wrong information while registration under GST.
  5. Evasion of tax by furnishing wrong financial records or furnishing wrong information for the purpose of evasion of tax.
  6. Failing to collect full TCS i.e.Tax collection At Source.
  7. Collects TCS but not submitted it to government within 3 months.
  8. If TCS is collected against the law but not paid to the government within 3 months;
  9. Failing to deduct TDS i.e. Tax Deduction at Source or id deduct TDS but not submitted it to government in time.
  10. Fails to Charge GST or if charged,Fails to submit it.
  11. Even if GST is charged but is not in provisions of GST,then also it is duty of person charging GST to submit it to government within 3 months
  12. Getting input tax credit illegally from distributor.
  13. Commit any fraud to obtain refund.
  14. Without receiving any goods or services from any party,if anyone availing input tax credit,then it comes under offence.
  15. If any person interupts any authority or creates disturbance while authority is performing his duties.
  16. While transporting goods,it is compulsory to send precribed documents,if persons fails to send it then,it wil be offence.
  17. Intentionally Transporting Confiscated goods.
  18. Destroys or tampers goods which have been seized.
  19. If someone is issuing invoice with other person TIN no.then it will be an offence.
  20. Destroying the evidence
  21. Does not maintain all books he is requuired to maintain by law.

If person is commiting any offence,then he shall be liable for penalty under GST law which are mentioned below:

If a person commits an offence, then it shall be under two circumstances i.e. either he commits it intentionally or it commits unintentionally.When person commits an offecence intentionally,then it shall known as fraud.

CASE: If offence is committed with no itention of fraud i.e. offence has been committed but unintentionally- In case,if offender is making short payment but its all was unintentional,then he shall be liable to pay penalty of 10% of tax amount which is due but shall not exceed 10,000

CASE: If offence is committed intentionally i.e.person commits fraud,then he shall be liable to pay :

  1. 100%penalty but shall not exceed Rs 10000.It means he shall be liable to pay 100% penalty on amount he was liable to pay but in actual he did not pay it to govt. For e.g. if person is liable to pay tax of 25000, but intentionally he evades it and pay tax of 20000,then on balance unpaid tax amount,100% penalty shall be levied.
  2. Additional Penalty : Provisions of Additional penalties are mentioned below
  3. If tax amount involved is Rs 50 lakhs, then person commits fraud shall be laible to pay fine plus imprionment of upto 1 year
  4. If tax amount involved is Rs 100 lakhs, then person commits fraud shall be laible to pay fine plus imprisonment of upto 3 years.
  5. If tax amount involved is Rs 250 lakhs,then offender shallbe liable to pay fine plus imprisonment of upto 5 years.

Inspection Under GST:

If Joint commisioner or higher officer of SGST/CGST has reasons to believe that in order to evade tax, person has manipulates his accounts or caimed excess input tax credit,then he can authorizw any other officer of CGST/SGST to inspect place of business,but such authorization must be in written form.

Appeals under GST:

First of all there is a need to understand,what is meant by appeal.When a person is not satisfy with the decisions made by any authority,then for cancellation of such decision he goes to higher authority.This process of going to next higher authority is known as making appeal.In simple terms, in school time,sometimes it happened that our class monitor made a decision regarding us,and if we were not satisfy with his decision,we went to our class teacher to cancel or reverse his decision.This is known as making appeal to teacher against decision of class monitor.

Under GST,there are broadly four levels of making appeals.

At 1st level, if order is passed by adjudicating authority,then appeal can be made to first appellate authority.

At 2nd level,if order is passed by first appellate authority,then appeal can be made to Appellate Tribunal.

At 3rd level,if order is passed by Appellate tribunal,then appeal can be made to high court.

At 4th level,if order is passed by High Court,Then appeal can be made to Supreme Court.

All appeals must be made in prescribed form along with requirerd fees.


Here Part 8 ends in which we had discussed about penalties and prosecutions.

In next part, we will discuss about the various decisions taken in meetings of GST which are getting some important changes in GST like amending limit of Composition scheme,giving some relaxation in returns need to be file in month of july and august,negative list of composition scheme,etc.

So, Don’t miss it.

In case of any query related to above article, the questions can be asked by commenting in the comment box or the author can be contacted personally at or 

For any type of Consultancy services, Click here

It seems that you haven’t subscribed to our newsletter yet. Hurry up and subscribe it. You will directly receive the updates in your mailbox.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.





Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

Optimization WordPress Plugins & Solutions by W3 EDGE