Offenses AND PENALTIES

PENALTY FOR CERTAIN OFFENCES

The list of following offenses is as under:

  • Supply of any goods or services or both without the issue of any invoice or issue of false invoice or issue an incorrect statement
  • Issue bill or Invoice without the supply of goods or services or both in violation of the provisions of this Act.
  • Collection of the tax amount but fails to pay to the Government beyond a period of three months from the date on which such payment becomes due
  • Tax not deducted under section 51 and sec 52, or deducts an amount less than the amount required to be deducted under the said section, or where he fails to pay to the Government.
  • Utilizes of ITC without actual receipt of goods or services or both either fully or partially,
  • Fraudulently obtains a refund of tax.
  • Filing any false information about registration particulars either at the time of applying for registration, or subsequently;
  • Transports any taxable goods without the cover of documents under the supply
  • Suppresses his turnover leading to evasion of tax.
  • Fails to keep, maintain or retain books of account and other documents.;
  • Supplies or stores or transport any goods which he has reasons to believe are liable to forfeit
  • Issues any invoice or document by using another person registration number;
  • Destroys or Tampered any material evidence or document

Amount of Penalty

  1. 10,000/-; or
  2. An amount equal to, any of the following
    1. Tax evaded; or
    2. Tax not deducted under section 51 and section 52 or short deducted or deducted but not paid to the Government; or
    3. ITC availed of or passed on or distributed irregularly; or
    4. Refund claimed fraudulently

Whichever is higher.

As per the provisions, any registered person –

  • supply any goods or services or both on which tax has not been paid or short-payment or 
  • where the ITC has been wrongly utilized or availed

Amount of Penalty

  • Any Reason, other than the reason of fraud or willful misstatement or evade tax –

 penalty Shall be liable to an amount equal to–

10,000/-; or

10% of the tax due from such person

Whichever is higher

  • For the reason of fraud or any willful misstatement or evade tax

Shall be liable to a penalty for an amount equal to–

  1. 10,000/-; or
  2. Tax due from such person

Whichever is higher

PENALTY FOR FAILURE TO FURNISH INFORMATION RETURN

A person shall be liable to pay a penalty of one hundred rupees for each day of the period during which the failure to furnish such return continues, subject to a maximum of five thousand rupees.

FINE FOR FAILURE TO FURNISH STATISTICS

 a person required to furnish any information or return under section 151, —

  • Fails to furnish information or return; or
  • any false information wilfully furnishes or causes to furnish,

he shall be punishable with a fine which may extend to ten thousand and  in case of a continuing offense the fine which may extend to one hundred rupees for each day after the first day of the continuing offense subject to a maximum limit of Rs.25000

GENERAL PENALTY

Any person, who contravenes any of the provisions of any rules made thereunder for which no penalty is separately provided, shall be liable to a penalty which may extend to Rs.25000.

WAIVE PENALTY OR FEE OR BOTH

The Government may waive in part or full by notification, any penalty referred to in relevant section or any late fee referred to in section 47 for such class of taxpayers and under such mitigating circumstances as may be on the recommendations of the Council.

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