Penalty Chart Under GST ( India ) : Section Wise

By | November 8, 2018
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(Last Updated On: November 8, 2018)

Penalty Chart Under GST

Penalty Chart Under GST / CGST Act 2017 of India

Section Wise Details of Penalty  payable under CGST Act 2017 of India

SectionDetails of Failure/ Person liable to PayPenalty
Section 47(1)Any Registered person who fails to furnish returns i.e. details of Outward supplies or Inward suppliesLate Fees of Rs 100 per day per Act subject to maximum of Rs. 5000/- per Act.

[ For GSTR 3B late fees for October 2017 onwards :-

A. For a taxpayer whose tax liability for that month was “NIL‟, late fee will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts).

B. For other taxpayers, whose tax liability for that month was not  “NIL‟, late fee payable will be Rs. 50/- per day (Rs. 25/- per day each under CGST & SGST Acts) ] Notification No. 64/2017-CT dated 15th November 2017

[ Note :

1. The GSTR 3B late fee for the months of July 2017, August 2017  and September 2017 for late filing of FORM GSTR  3B has already been waived off vide Notification No. 28/2017-CT dated 1 st September 2017 and 50/2017-CT dated 24th October 2017. Thus you are not require to pay GSTR 3B late fees for July 2017, August 2017  and September 2017 .

2. The Govt has waived Late fees for the registered persons whose return in FORM GSTR-3B of the Central Goods and Services Tax Rules, 2017 for the month of October, 2017, was submitted but not filed on the common portal, after generation of the application reference number; [ Refer Notification No 41/2018 Central Tax : Late fee waiver for GSTR3B,]

Section 47(2)Failure to furnish Annual return under section 44Late Fees of Rs 100 per day per Act subject to maximum of .25% of turnover per Act.
Section 52Electronic Commerce operator failing to furnish information required through Notice under section 52(12)Rs. 25,000/-
Section 73 / Section 122(2)(a)Person liable to pay Tax if the same:

– not paid, or

– short paid, or

– erroneously refunded, or

– input tax wrongly availed, or utilized

for any reason other than fraud or wilful misstatement or suppression of facts.

Time Limit for issue of Notice (section 73(2)):

– 33 months (i.e. 3 months prior to the time limit for issuance of order as per section 73(10)).

Time Limit for issuance of Order (section 73(10)):

– 3 years from the due date of furnishing of Annual return for the relevant Financial Year, or

– 3 years from the date of erroneous refund

– Nil (Zero) if amount due is paid with interest prior to or within 30 days of Show Cause Notice.

– 10% of amount due or Rs. 10,000/- whichever is higher as per the adjudication order.

– 10% of amount due or Rs. 10,000/- whichever is higher if self assessed tax or amount collected as tax has not been paid within period of 30 days from the due dates of payment of such tax.

Section 74 /

Section 122(2)(b)

Person liable to pay Tax if the same:

– not paid, or

– short paid, or

– erroneously refunded, or

– input tax wrongly availed, or utilized

by reason of fraud or wilful misstatement or suppression of facts.

Time Limit for issue of Notice (section 74(2)):

– 54 months (i.e. 6 months prior to the time limit for issuance of order as per section 74(10)).

Time Limit for issuance of Order (sec 74(10)):

– 5 years from the due date of furnishing of Annual return for the relevant FY, or

– 5 years from the date of erroneous refund

– 15% if amount due is paid with interest prior to issuance of Show Cause Notice.

– 25% of amount if the same is paid with interest within 30 days of issuance of Show Cause Notice.

– 50 % of amount if the same is paid with interest within 30 days of issuance of adjudication order.

– 100% of amount due or Rs. 10,000/- whichever is higher

Section 122(1)Any taxable person for the below 21 reasons:

i. Supplying goods or services without issue of any invoice or incorrect or false invoice;

ii. Issues any invoice without supplying any goods or services or both in violation of this Act or rules;

iii. Collects the tax but fails to deposit the same with Govt within 3 months of due date;

iv. Collects the tax in violation of this Act but fails to deposit the same with Govt within 3 months of due date.

v. Fails to deduct TDS & fails to deposit the TDS with Govt;

vi. Fails to deduct TCS & fails to deposit the TCS with Govt;

vii. Takes or utilizes ITC without actual receipt of goods or services.

viii. Obtains refund of tax fraudulently;

ix. Takes or distributed ITC in violation of law;

x. Falsification / substitution of records or production of false accounts/documents or furnishing of any false information or return with intention to evade payment of tax;

xi. Fails to take registration;

xii. Submission of false information for taking registration & subsequently ;

xiii. Obstructs or prevents any officer from discharge of his duties;

xiv. Transport any taxable goods without proper documents

xv. Suppresses turnover to evade tax;

xvi. Fails to maintain proper accounts & documents;

xvii. Fails to furnish information or documents in any proceedings

xviii. Supplies, transport, stores any goods which he knows are liable to confiscation under the Act.

xix. Issues any invoice or document using the registration number of another registered person;

xx. Tampers with, destroys any material evidence or document;

xxi. Disposes off or tampering with any goods that have been detained, seized or attached under the Act.

1. Rs. 10,000/- or

2. An amount equivalent to:

– Tax evaded or

– TDS not deducted or short TDS deducted or not deposited with Govt.

– TCS not collected or short TCS collected or not deposited with Govt.

– Wrong ITC availed or utilized

– Wrong ITC passed or distributed

– Wrong refund claimed

Whichever is higher.

Section 122(3)Any person for the below 5 reasons:

a) Who aids or abets any offences under section 122(1)  ;

b) Acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying or purchasing or in any other manner deals with any goods which know or has reasons to believe are liable to confiscation under this Act.

c) Receives or is in any way connected with the supply or in any other manner deals with any goods which know or has reasons to believe are liable to confiscation under this Act;

d) Fails to appear before the officer on being summoned;

e) Fails to issue invoice or account for an invoice in his books of accounts as per the Act

Up to Rs. 25,000/-
Section 123Person covered under section 150 for failure to furnish information return or wilfully furnishing false information returnRs 100 per day per Act subject to maximum of Rs. 5000/-.

Section 124

Person covered under section 151 for failure to furnish (statistics) information return or willfully furnishing false information return– Rs. 10000/- and

– In case of continuing default, Rs. 100/- per day subject to maximum of Rs. 25,000/-

Section 125General Penalty on any person for contravention of any provision of this Act for which no separate penalty is provided forUp to Rs. 25,000/-
Section 126Minor breaches of tax regulations or procedural requirements, any omission or mistake in documentation which is easily rectifiable and made without any fraudulent intention or gross negligence.

– A breach is minor breach if the amount of tax involved is less than Rs. 5,000/-

– A omission or mistake in document shall be considered as rectifiable if the same is an error apparent on the face or record.

No Penalty

Section 129(1)

(Part-1)

Any person transports any goods or stores any goods during they are in transit in contravention of this Act. Release of seized or detained goodsAll such goods, such conveyance and documents pertaining to such goods and such conveyance shall be liable to detention or seizure.

On release of such seized or detained goods and conveyance

129(1)(a), (b) & (c)

(Part-2)

On release of such seized or detained goods and conveyance

A. Where the owner of goods comes forward for payment of such tax and penalty, then:

100% of applicable tax + penalty equal to 100% of applicable tax.

And

In case of exempted goods, then:

– 2% of value of goods or

– Rs. 25,000/-

whichever is less.

B. Where the owner of goods comes forward for payment of such tax and penalty, then:

50% of applicable tax.

And

In case of exempted goods, then:

– 5% of value of goods or

– Rs. 25,000/-

whichever is less.

Section 20 of IGST Act 2017Penalty if leviable under CGST Act and SGST Act or the UTCGST ActSum total of penalties imposed under these Acts.

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