Late fees, Penalties and Prosecution under the GST Law

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A.  Late fees

S. No. Failure to furnish Failure under Section Due date Late fee under Section Amount of late fee
1 Details of outward supplies Section 37 10th of the succeeding month Section 47 Rs. 100/day
Max. Rs. 5000/-
2 Details of inward supplies Section 38 15th of the succeeding month Section 47 Rs. 100/day
Max. Rs. 5000/-
3 Return Section 39 20th of the succeeding month Section 47 Rs. 100/day
Max. Rs. 5000/-
4 Final Return Section 45 3 months from date of cancellation of registration or cancellation order, whichever is earlier Section 47 Rs. 100/day
Max. Rs. 5000/-
5 Annual Return Section 44 31st December following the end of such FY Section 47 Rs. 100/day
Max. 0.25% of aggregate turnover
6 First Return Section 40 Unknown Unknown Unknown
7 TDS Certificate Section 51(3) 5 days of crediting the amount deducted to the appropriate Government Section 51(4) Rs. 100/day
Max. Rs. 5000/-

B.  Penalties

Sl. No. Event Relevant
Section
Penalty under Section Amount of penalty
1 Taxable person not eligible for composition levy Section 10 Section 10(5) Provisions of section 73 and 74 shall apply mutatis mutandis for determination of penalty
2 Tax not paid, short paid or erroneously refunded for reasons other than fraud, willful misstatement or suppression of facts Section 73 Section 73(9) Higher of 10% of tax or Rs. 10,000/-
3 Tax not paid, short paid or erroneously refunded for reasons of fraud, willful misstatement or suppression of facts Section 74 Section 74(1) Penalty equivalent to the tax
4 Tax not paid, short paid or erroneously refunded for reasons of fraud, willful misstatement or suppression of facts

Payment before service of notice

Section 74 Section 74(5) Penalty equivalent to 15% of such tax
5 Tax not paid, short paid or erroneously refunded for reasons of fraud, willful misstatement or suppression of facts: Payment within 30 days of notice Section 74 Section 74(8) 25% of such tax
6 Tax not paid, short paid or erroneously refunded for reasons of fraud, willful misstatement or suppression of facts: Payment within 30 days of order Section 74 Section 74(11) 50% of such tax
7 Tax collected but not deposited Section 76(1) Section 76(2) Equivalent to the amount mentioned in notice
8 Supply without issue of invoice or issue of incorrect or false invoice Section 122 (1)(i) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
9 Issue of invoice or bill without supply Section 122(1)(ii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
10 Tax collected but not deposited within a period of 3 months from the due date Section 122(1)(iii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
11 Tax collected in contravention of the Act but not deposited within a period of 3 months from the due date Section 122(1)(iv) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
12 Failure to deduct tax or short-deduction or failure to pay deducted tax under Section 46 Section 122(1)(v) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
13 Failure to collect tax at source or short-collection or failure to pay collected tax under Section 56 Section 122(1)(vi) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
14 Taking/ utilisation of input tax credit without actual receipt fully/partially Section 122(1)(vii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
15 Fraudulent refund Section 122(1)(viii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
16 Taking/distributing input tax credit in violation of Section 21 Section 122(1)(ix) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
17 Falsifying or substituting financial records/ producing fake accounts or documents/ furnishing false information or return with intent to evade payment of tax due Section 122(1)(x) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
18 Failure to obtain registration Section 122(1)(xi) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
19 Furnishing false information with regard to particulars specified as mandatory Section 122(1)(xii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
20 Obstruction or prevention of any officer in discharge of his duties under the Act Section 122(1)(xiii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
21 Transportation of any taxable goods without the cover of documents as specified Section 122(1)(xiv) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
22 Suppression of turnover leading to evasion of tax Section 122(1)(xv) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
23 Failure to keep, maintain or retain books of account and other documents in accordance with the provisions Section 122(1)(xvi) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
24 Failure to furnish information called for by the officer or furnishing false information/ documents Section 122(1)(xvii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
25 Supplying, transporting or storing any goods which he has reason to believe are liable to confiscation Section 122(1)(xviii) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
26 Issuance of any invoice or document by using the identification number of another taxable person Section 122(1)(xix) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
27 Tampering with or destroying any material evidence Section 122(1)(xx) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
28 Disposing off or tampering with any goods that have been detained, seized, or attached under the Act Section 122(1)(xxi) Section 122(1) Higher of Rs. 10,000/- and amount equivalent to the subject tax/ input tax credit
29 Aiding or abetting any of the offences specified above in Sl No. 9 to Sl. No. 29 Section 122(3)(a) Section 122(3) Upto Rs. 25,000/-
30 Acquiring possession of, or concerning himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation Section 122(3)(b) Section 122(3) Upto Rs. 25,000/-
31 Receiving, or in any way concerning with the supply of, or in any other manner dealing with any supply of services which he knows or has reason to believe are in contravention of any provisions of this Act Section 122(3)(c) Section 122(3) Upto Rs. 25,000/-
32 Failure to appear before the officer, when issued with a summon Section 122(3)(d) Section 122(3) Upto Rs. 25,000/-
33 Failure to issue invoice in accordance with the provisions or failure to account for an invoice in his books of account Section 122(3)(e) Section 122(3) Upto Rs. 25,000/-
34 General penalty Section 125 Section 125 Upto Rs. 25,000/-
35 Failure to furnish information return Section 150 Section 123 Rs. 100/day

C.  Prosecution

Sl. No. Event Section Provision
1 Supply without issue of invoice/ incorrect/ false invoice Section 132(1)(a) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
2 Issue of invoice without supply Section 132(1)(b) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
3 Tax collected but failure to pay beyond a period of 3 months from the due date Section 132(1)(d) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
4 Tax collected in contravention of the Act but failure to pay beyond a period of 3 months from the due date Section 132(1)(d) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
5 Taking/utilizing input tax credit without actual receipt of goods/services Section 132(1)(c) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
6 Fraudulently obtains refund Section 132(1)(e) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
7 Falsifying/substituting financial records; producing fake accounts/ documents with intention to evade tax Section 132(1)(f) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
8 Obstructing/preventing any officer in charge of his duties Section 132(1)(g) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine                                                                                                In cases where he commits or abets in the commission of an offence
specified, with imprisonment for a term which
may extend to six months and/or with fine
9 Acquiring possession of, or concerning himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation Section 132(1)(h) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
10 Receiving, or in any way concerning with the supply of, or in any other manner dealing with any supply of services which he knows or has reason to believe are in contravention of any provisions of this Act Section 132(1)(i) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
11 Tampers with or destroys any material or evidence or document Section 132(1)(j) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine                                                                                                In cases where he commits or abets in the commission of an offence
specified, with imprisonment for a term which
may extend to six months and/or with fine
12 Failure to supply information which is required to be supplied/ supply of false information Section 132(1)(k) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine                                                                                                In cases where he commits or abets in the commission of an offence
specified, with imprisonment for a term which
may extend to six months and/or with fine
13 Attempting to commit or abetting the commission of any of the above offences Section 132(1)(l) Amount of tax evaded > Rs. 500 lakhs: Imprisonment upto five years and fine
Amount of tax evaded > Rs. 200 lakhs < Rs. 500 lakhs: Imprisonment upto 3 years and fine
Amount of tax evaded > Rs. 100 lakhs < Rs. 200 lakhs: Imprisonment upto 1 year and fine
14 Second or subsequent conviction under Section 132(1) Section 132(2)  Imprisonment upto 5 years and fine

Not less than 6 months as per Proviso Section 92(2)

15 Willful disclosure of any information or the contents of any return under section 151 by a person engaged in connection with the collection of statistics under that section Section 133(1) Imprisonment upto six months or fine upto Rs. 25000 or both

 

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