Offences And Penalties under GST

What are Offences And Penalties under GST

What are Offences And Penalties under GST

The law has clearly defined rules of offenses and the penalties under GST in each scenario. This is very important info for business owners, Tax Practioner’s and Professionals as an inadvertent mistake can cause severe consequences.

Penalties Under GST

A Penalty is a punishment imposed by law for committing an offense and Penalty can be both corporal(jail) and pecuniary(monetary) and these both penalties are applicable under GST.

For unintentional tax frauds: If any person not paying any tax on time or paying less amount has to pay a 10% penalty subject to a minimum of Rs. 10,000. For intentional tax frauds: Then the responsible person has to pay 100% penalty.

In addition to fine, the following punishments (jail-term) are also liable in some cases.

Tax amount involved 100-200 lakhs 200-500 lakhs Above 500 lakhs
Jail term Upto 1 year Upto 3 years Upto 5 year
Fine In all three cases

Offences Under GST

An offense is a breach of a law or rule, i.e., an illegal act. For any offense committed by a company, both the officer in charge as well as the company will be held liable.For LLPs, HUFs, trust, the partner/ managing trustee will be held liable.

Here’s the list of 21 offenses identified under GST:

Fake/wrong invoices

  1. Selling products or services without producing a valid tax invoice or using a wrong/fake invoice.
  2. Issuing a fake invoice without actually making the sale.
  3. Using GSTIN of someone else.


  1. Providing false information during GST registration.
  2. Providing false information when filing tax returns or filing false returns.
  3. Providing false information during assessment proceedings.

Tax evasion

  1. Not submitting tax collected to the government within 3 months.
  2. Not submitting false tax deducted (In contravention of GST provisions) within three months.
  3. Claiming or obtaining a GST refund by fraud.
  4. Claiming ITC (Input Tax Credit) without providing the actual supply receipt.
  5. Understating the actual sales during a particular period to evade tax.

Supply/transport of goods

  1. Transporting of goods without proper documentation.
  2. Supplying or transporting any products that are liable to confiscation.
  3. Tampering with the products that have been confiscated by law.
  4. Non-registration even if the person is liable to pay tax


  1. Not deducting TDS even where applicable or deducting lesser amount
  2. Not deducting TCS even where applicable or deducting lesser amount
  3. Not distributing tax credits or distributing the law provisions
  4. Preventing any tax officer from performing his duties
  5. Not maintaining proper account books as required by law
  6. Destroying an evidence intentionally

Appeals Under GST

An appeal is a process of filing a request in a higher court against the decision made by a lower court. Appeals under GST are allowed as per the following system.

1st Appeal First Appellate Authority Under section 71 of law
2nd Appeal Appellate Tribunal Sections 81, 82, 83 & 84
3rd Appeal High court Section 87
4th Appeal Supreme Court Section 88, 89


It is important to maintain the level of appeals as prescribed above. Any person can appeal against a decision made by an authority against him under GST to the next level authority only.

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