OFFENCES AND PENALTIES :
The word “offence” has not been defined in the Model GST Law. It comes from the Latin word “offendere” which means “strike against” and this, in the context of a tax law, is derived as striking against the law. The Courts have interpreted “offence” as violation of a law in force and for the violation of which the law prescribes a penalty.
The Model GST Law codifies the offences and penalties in Chapter XVI. The Act list 21 offences in section 66, apart from the penalty prescribed under section 8 for availing compounding by a dealer who is not eligible for it. The said offences are as follows:-
1) Making a supply without invoice or with false/incorrect invoice
2) Issuing an invoice without making supply
3) Not paying tax collected for a period exceeding 3 months
4) Not paying tax collected in contravention of the Act for a period exceeding 3 months
5) Non deduction or lower deduction of tax deducted at source or not depositing tax deducted at source under section 37
6) Non collection or lower collection of or non-payment of tax collectible at source under section 43C
7) Availing/utilizing input tax credit without actual receipt of goods and/or services
8) Fraudulently obtaining any refund
9) Availing/distributing input tax credit by an Input Service Distributor in violation of Section 17
10) Furnishing false information or falsification of financial records or furnishing of fake accounts/documents with intent to evade payment of tax
11) Failure to register despite being liable to pay tax
12) Furnishing false information regarding mandatory fields for registration
13) Obstructing or preventing any official in discharge of his duty
14) Transporting goods without prescribed documents
15) Suppressing turnover leading to tax evasion
16) Failure to maintain accounts/documents in the manner specified in the Act or failure to retain accounts / documents for the period specified in the Act
17) Failure to furnish information/documents required by an officer in terms of the Act/Rules or furnishing false information/documents during the course of any proceeding
18) Supplying/transporting/storing any goods liable to confiscation
19) Issuing invoice or document using GSTIN of another person
20) Tampering/destroying any material evidence
21) Disposing of /tampering with goods detained/seized/attached under the Act.