Offence
A GST Taxpayer must be aware of Offence, Penalty and Appeal. He/She must follow the rules and guidelines levied by the Indian government.
The GST system describes the offense guidelines which a taxpayer must follow. There are 21 offences which is defined in the GST regime which is as follows:
- A GST registered person supplying goods and services without a proper invoice and with fraudulent information mentioned in the invoice
- Tax Invoice issued without actual supply of goods and services
- No registration of GST even if the turnover limit exceeds
- Using a different GSTIN for invoice
- Providing false information at the time of GST Registration
- Providing false data at the time of GST Return Filing
- Providing false information at the time of assessment
- Deducted GST amount not reported in the returns within 3 months of deduction
- Deducted TDS amount not reported in the returns within 3 months of deduction
- Getting a refund by fraudulent activity
- Claiming ITC without getting actual goods or services
- No proper maintenance of records if it is required by law
- Showing less sales for tax evasion
- Obtaining composition scheme even though not eligible
- Transportation of goods without proper documentation
- Supply of goods which is not legal
- TDS not deducted beyond the prescribed limit
- TCS not collected beyond the prescribed limit
- Distribution of Input service as per the prescribed limit by an Input service distributor
- Destroying the goods and evidence
- Obstructing the officers to perform their duties
If any person commits any of the above activities, he is liable to the government.
Penalty
Base on the above offences, penalty is levied. It may be levied on the basis of certain criteria such as:
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Late filing: Filing the GST returns late will attract penalty in the name of “Late fees”. This fee is fixed at ₹200 (CGST + SGST) up to a maximum of ₹5000.
Beyond late fee calculation, interest @18 % p.a. will be added in addition.
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No filing: GST Returns must be filed continuously. Filing returns by swapping any month is not possible and is subject to penalty.
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Committing offenses with intention: If any taxpayer committing any of the above 21 offences, must pay a 100% penalty if he commits with an intention.
The penalty amount is fixed to a minimum of ₹10,000
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Committing offenses without intention: If any taxpayer committing any of the above 21 offences, must pay 10% of tax amount if he commits without an intention. The penalty amount is subject to a minimum of ₹10,000
Appeal
If a GST taxpayer commits any offence with an intention of fraud, he/she must face criminal charges levied by the GST authorities. Such tax evaders may be arrested by the officer.
If a person does not agree to the arrest warrant or the order passed, they can create appeal.
An appeal is based on the order wise. The first appeal is moved to the First Appellate authority. If he is not satisfied with the first Appellate authority, he can move to the
National Appellate authority.After which, if he wants to appeal, he can approach High court and Supreme court