Offences under GST Law :
Major offence in GST law is obviously non-payment or short payment of taxes or improper availment or utilization of input tax credit or erroneous refund. These are covered under sections 73 and 74 of CGST Act.
Once penalty under provisions of section 73 or 74 are paid, all proceedings are concluded and penalty cannot be imposed under any other provision of GST Law [of course, prosecution can be launched].
Provisions relating to other offences are discussed in this chapter.
Following are offences under GST Law other than those covered in sections 73 and 74 of CGST Act.
Penalties can be imposed by departmental authorities to person committing the specified offence. Section 122(1) of CGST Act states as follows —
Where a taxable person who —
(i) supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply.
(ii) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made there under.
(iii) collects any amount as tax but fails to pay the same to the credit of the Government beyond a period of three months from the date on which such payment becomes due.
(iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the credit of the Government beyond a period of three months from the date on which such payment becomes due.
(v) fails to deduct the tax in accordance with the provisions of section 51(1), or deducts an amount which is less than the amount required to be deducted under the said subsection, or where he fails to pay to the credit of the Government under section 51(2) thereof, the amount deducted as tax.
(vi) fails to collect tax in accordance with the provisions of section 52(1), or collects an amount which is less than the amount required to be collected under the said sub-section, or where he fails to pay to the credit of the Government under section 52(4) thereof, the amount collected as tax.
(vii) takes or utilizes input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act, or the rules made there under.
(viii) fraudulently obtains refund of tax under this Act.
(ix) takes or distributes input tax credit in violation of section 20, or the rules made there under.
(x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or return with an intention to evade payment of tax due under this Act.
(xi) is liable to be registered under this Act but fails to obtain registration.
(xii) furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently.
(xiii) obstructs or prevents any officer in discharge of his duties under this Act.
(xiv) transports any taxable goods without the cover of documents as may be specified in this behalf.
(xv) suppresses his turnover leading to evasion of tax under this Act.
(xvi) fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made there under.
(xvii) fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or rules made there under or furnishes false information or documents during any proceedings under this Act.
(xviii) supplies, transports or stores any goods which he has reason to believe are liable to confiscation under this Act.
(xix) issues any invoice or document by using the registration number of another registered person.
(xx) tampers with, or destroys any material evidence or document.
(xxi) disposes off or tampers with any goods that have been detained, seized, or attached under this Act.
shall be liable to a penalty of rupees ten thousand or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, as the case may be, whichever is higher.