The Central Goods And services Tax Act 2017
Section 122 penalties for certain offences
122.(1) Where a taxable person who –
- Supplying goods or services without issuing an invoice, or issuing an incorrect or false invoice for such supply.
- Issuing an invoice or bill without actually supplying goods or services, which violates the provisions of the law or regulations.
- Collecting any amount as tax but failing to remit it to the government within three months from the due date.
- Collecting any tax in violation of the provisions of the Act but failing to remit it to the government within three months from the due date.
- Failing to deduct tax in accordance with the provisions of subsection (1) of section 51, or deducting an amount less than required, or failing to pay to the government the amount deducted as tax as per subsection (2) of section 51.
- Failing to collect tax in accordance with the provisions of subsection (1) of section 52, or collecting an amount less than required, or failing to remit to the government the amount collected as tax under subsection (3) of section 52.
- Taking or utilising input tax credit without actually receiving goods or services, either fully or partially, in violation of the provisions of the Act or the rules made thereunder.
- Fraudulently obtaining a tax refund under this Act.
- Taking or distributing input tax credit in violation of section 20 or the rules established under it.
- Falsifying or substituting financial records, producing fake accounts or documents, or providing false information or returns with the intention of evading payment of tax due under this Act.
- Being liable to be registered under this Act but failing to obtain registration.
- Providing false information regarding registration particulars, either during the application for registration or at a later time.
- Obstructing or preventing any officer from carrying out their duties under this Act.
- Transporting taxable goods without the required documents specified for this purpose.
- Suppressing turnover, which results in the evasion of tax under this Act.
- Failing to keep, maintain, or retain books of account and other documents as required by the provisions of this Act or the rules made thereunder.
- Failing to provide information or documents requested by an officer in accordance with the provisions of this Act or the rules made thereunder, or providing false information or documents during any proceedings under this Act.
- Supplying, transporting, or storing any goods that the person has reason to believe are liable to confiscation under this Act.
- Issuing any invoice or document using the registration number of another registered person.
- Tampering with or destroying any material evidence or document.
- Disposing of or tampering with any goods that have been detained, seized, or attached under this Act.
In such cases, the individual shall be subject to a penalty of ten thousand rupees or an amount equal to the tax evaded, not deducted under section 51, or deducted but not remitted to the Government, not collected under section 52, or collected but not remitted to the Government, irregularly availed input tax credit, irregularly passed on or distributed input tax credit, or fraudulently claimed refund, whichever is greater.
(2) Any registered person who supplies any goods or services or both on which any tax has not been paid, or has been short-paid, or has been erroneously refunded, or where the input tax credit has been wrongly availed or utilised
(a) If the tax is not paid, short-paid, or erroneously refunded, or if the input tax credit is wrongly availed or utilised for any reason other than fraud or willful misstatement or suppression of facts to evade tax, the person shall be liable to a penalty of ten thousand rupees or ten percent of the tax due from such person, whichever is higher.
(b) If the reason for the tax not being paid, being short-paid, or erroneously refunded, or for the wrongful availment or utilisation of input tax credit is due to fraud or willful misstatement or suppression of facts to evade tax, the person shall be liable to a penalty equal to ten thousand rupees or the tax due from such person, whichever is higher.
(3) Any person who–
(a) Assists or encourages any of the offences specified in clauses (i) to (xxi) of subsection (1).
(b) Obtains possession of, or in any way involves himself in transporting, moving, storing, concealing, supplying, purchasing, or in any other manner deals with any goods that he knows or has reason to believe are subject to confiscation under this Act or the rules made thereunder.
(c) Receives or is involved in any way with the provision of, or in any other manner deals with any provision of services that he knows or has reason to believe are in violation of any provisions of this Act or the rules made thereunder.
(d) Fails to appear before the officer of central tax when issued a summons to give evidence or produce a document in an inquiry shall be liable to a penalty which may extend to twenty-five thousand rupees.
(e) Fails to issue an invoice in accordance with the provisions of this Act or the rules made thereunder, or fails to account for an invoice in his books of account shall be liable to a penalty which may extend to twenty-five thousand rupees.
Sec 123-Penalty for failure to furnish information return
Section 123 states that if an individual fails to furnish an information return as required under section 150 within the specified period mentioned in the notice issued under subsection (3) thereof, the proper officer may impose a penalty of one hundred rupees for each day of the period during which the failure to furnish the return continues. However, the total penalty imposed under this section cannot exceed five thousand rupees.
Sec 125-Fine for failure to furnish statistics
If any individual obligated to provide any information or submit a return under section 151,
(a) Without reasonable cause, fails to provide the required information or submit the return as specified under that section, or
(b) Willfully provides or causes to provide any information or return that he knows to be false,
He shall be subject to a fine of up to ten thousand rupees for the offence, and in the case of a continuing offence, to an additional fine of up to one hundred rupees for each day after the first day during which the offence continues, subject to a maximum limit of twenty-five thousand rupees.
Sec 125 – General Penalty.
Any individual who violates any provision of this Act or any rules made thereunder, for which no separate penalty is provided in this Act, shall be liable to a penalty of up to twenty-five thousand rupees.
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