General Offences & penalties under GST
An offense is defined as a breach of a law or rule, i.e. an illegal act. Similarly, an offense under GST is a breach of the provisions of the GST Act. There are 21 offenses under GST, which we have classified under the following sections, for your easy reference:
1. Fake or Incorrect Invoices / Bills
A taxable person indulges in the following GST offenses:
- Supplies any goods/services without any invoice or issues a false invoice
- Issues any invoice or bill without supply of goods and/or services in violation of the provisions of GST.
- Issues invoices using the identification number i.e. GSTIN of another bonafide taxable person
2. Fraud
A taxable person indulges in the following offense under GST:
- Submits false information while registering under GST
- Submits fake financial records or documents or files fake returns to evade taxes
- Does not provide information or provides false information during proceedings
A taxable person indulges in the following offenses under GST:
- Collects GST, but does not submit it to the government within 3 months
- Collects GST by breaking the provisions, but fails to deposit it to the government within 3 months, which will still be treated as an offense under GST
- Obtains refund of any CGST / SGST by fraud
- Takes and/or utilizes ITC without actual receipt of goods and/or services
- Deliberately suppresses his sales to evade taxes.
A taxable person indulges in the following offenses in GST:
- Transports goods without proper documents
- Supplies or transports goods, which he knows will be confiscated
- Destroys or tampers goods which have been seized
A taxable person:
- Has not registered under GST although he is required to register under the law.
- Does not deduct TDS or deducts less amount than what is applicable.
- Does not collect TCS or collects less amount than what is applicable.
- Takes or distributes input tax credit in violation of the rules, being an Input Service Distributor
- Obstructs the proper officer during his duty, for instance, during the audit.
- Does not maintain all the books that he is required to maintain under the law
- Destroys any kind of evidence.
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