Section 122 of the CGST Act is the primary penalty provision for GST offences. It lists 21 specific offences and prescribes penalties that can be substantial. Understanding the offences and penalties is essential for compliance risk management.
This article provides a complete list of offences and fines under Section 122.
Key Offences and Penalties
- No invoice/debit note: 100% of tax or ₹10,000, whichever is higher.
- Wrong ITC claim: 100% of tax or ₹10,000.
- Fraudulent ITC: 150% of tax or ₹10,000.
- Issuing invoices without actual supply (fake invoicing): 100% of tax or ₹10,000.
- Collecting GST but not depositing beyond three months: 100% of tax or ₹10,000.
- Supplying goods/services without invoice: 100% of tax or ₹10,000.
- Obstructing an officer: ₹25,000.
- Tampering with material evidence: ₹25,000.
- Failure to register: 100% of tax or ₹10,000.
General Penalty Under Section 125
Where no specific penalty is provided, a general penalty of up to ₹25,000 applies.
Prosecution Under Section 132
Serious offences under Section 132 can lead to prosecution, including imprisonment. The offences include tax evasion, fake invoicing, and fraudulent ITC.
Conclusion
Section 122 penalties can be significant. Businesses must ensure compliance with invoicing, ITC, and tax payment requirements to avoid penalties. Professional advice is essential when facing penalty proceedings.
At Anuj Desai & Associates, we provide expert representation services for GST penalty proceedings. Our team can help you challenge improper penalties and protect your interests.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.