Offence under GST

Offence under GST

An offence is defined as a breach of a law or rule, i.e. an illegal act. Similarly an offence under GST is a breach of the provisions of the GST Act. There are 21 offences under GST, which we have classified under the following sections, for your easy reference:

Fake or Incorrect Invoices / Bills

A taxable person indulges in the following GST offences:

• 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 bona-fide taxable person

Fraud

A taxable person indulges in the following offence 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

Tax Evasion

A taxable person indulges in the following offences 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 offence 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

Supply or Transport of Goods

A taxable person indulges in the following offences 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

Other offences under GST

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 audit
• Does not maintain all the books that he is required to maintain under the law
• Destroys any kind of evidence

For all the 21 offences in GST listed above, penalty will be a minimum of INR 10,000, with variations in place, depending of the nature of the offence under GST.