Penalties and offenses under GST

In this article you will learn about Penalties and Offenses.

The meaning of penalty:

The penalty is a punishment imposed by the authority against a party for doing an offense or doing something that the company wasn't supposed to do. A party that is considered offending can be imposed with monetary punishment/ Jail punishment or both in some cases.

What can be considered an offense under the GST regime?

The following acts are considered to be an offense under the GST regime

1. Fake or wrong invoices: Supplying the customer with the wrong invoice or false invoice, GST invoice violating the guidelines, or adding wrong GST numbers of different parties are examples of the fake or wrong invoice considered to be punishable law.

2. Fraud: Adding wrong information about the party, submitting fake records or files are some acts of fraud that are considered to be an offense.

3. Tax evasion: If you fail to pay your taxes to the government within the stipulated time frame, get refunds or exemptions by presenting false documents, get input tax credit with fake documents or manipulate sales data to evade taxes, you will be penalized as these all are examples that come under tax evasion.

4. Supply/Transport of goods without proper documentation.

Offense and penalties.

Type of offense	Amount of penalty
Delay in filing GSTR	A late fee of 100 per day for SGST and 100 for CGST. The maximum amount is 5000.
Not filing GSTR	10% of tax due / INR 10,000 or whichever is higher.
Committing a fraud	100% of tax due / INR 10,000 or whichever is higher.
Helping a person to commit fraud	Penalty up to INR 25,000
Opting for composition scheme even though he is not eligible	100% of tax due / INR 10,000 or whichever is higher.
Wrongfully charging GST rate— charging a higher rate	100% of tax due / INR 10,000 or whichever is higher.
Not issuing an invoice	100% of tax due / INR 10,000 or whichever is higher.
Not registering under GST	100% of tax due / INR 10,000 or whichever is higher.
Incorrect / Fake invoicing	Rs. 25,000

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