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Offences And Penalties Under GST – All You Need To Know About

Goods and Services tax has listed out certain activities as Offences. The primary aim of GST is to eliminate Tax Evasion. In this direction, strict penalties are fixed for the offenses listed in the GST. There are 21 offenses listed in the GST and the penalties for these offenses are as follows:


Some of the Major offenses under GST are as follows:

1. Not registering under GST, even though it is required as per the law. Certain individuals who are running firms, organizations, companies which have turn over more than Rs 20 lakhs per annum ( Rs 10 lakh per annum in North-east states) are liable to be registered
for GST.

2. Supplying Goods or Services without invoices or issuing a fake invoice.

3. A Taxable person supplying Goods with the invoice raised from the GSTIN of another taxpayer.

4. Submitting wrong information intentionally while registering for GST.

5. Submitting any fake documents or records or false records to Evade Tax.

6. Obtaining refunds in a wrong way.

7. Deliberately concealing the sales to evade tax.

8. Ineligible taxpayer going for the composite scheme.


Strict Penalties are imposed under GST to make sure that Tax evasion is crushed to the lowest possible level. Some of the penalties for offenses under GST are as follows:

1. Late Filing of GST :

Filing the GST after the due date would attract Late Fee. The late fee under GST is Rs 100. SGST and CGST would charge Rs 100 each per day. So, Rs 200 would be the late fee per day after the due date of filing the GST.

2. Not Filing GST :

If a GST return is skipped and not filed, the subsequent GST cannot be filed. If a person didn’t file GSTR-2, then he wouldn’t be allowed to file GSTR3. So, late filing of GST would have a cascading effect and would lead to heavy penalties.

3. Offence without the intention of Fraud :

A taxpayer, who evades tax or pays the lesser tax that was supposed to pay, will have to pay 10% of the tax amount due in addition to the tax or Rs 10,000 whichever is more.

4. Offences with the intention of Fraud or Tax Evasion :

An offender who evades tax deliberately with an intention of Fraud or Tax evasion has to pay 100% penalty or Rs 10,000 whichever is more. An additional penalty of jail term will

be levied up to 1 year if the amount is between 100 lakhs to 200 lakhs, Up to 3 years imprisonment if the amount is between 200 to 500 lakhs and 5 years imprisonment if the amount is more than 500 lakhs.


If the Joint Commissioner of SGST or CGST believes that a person has suppressed information to evade tax or claimed more input tax credit, he may give a search order in the places of business operations of the person. Based on the search and investigation, there are chances of arrest and prosecution.


If a person is not satisfied with the decision or order is given under GST, he has the chance to appeal against this decision. The first appeal would go to First Appellate Authority. If the person is not even satisfied with the decision or order of First Appellate, they have a
chance to appeal to the National Appellate Tribunal. Further, if they are not satisfied, they may go legally to the High Court and finally to the Supreme Court. The interests and safety of the taxpayers are also protected under GST in this manner.

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Offences And Penalties Under GST – All You Need To Know About


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