GST Penalties, Offenses and Appeals


Updates and details for GST Penalties, Offenses and Appeals:

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Offenses In GST:

There are 21 offenses under GST apart from the penalty under section 8 covering fake/wrong invoices, fraud, tax evasion and others. They mentioned here.

  1. A supplier supplies goods or services without any proper invoice or has issued a false invoice.
  2. He affects the issuance of an invoice without supplying the goods or services as per provisions of GST.
  3. He uses the GSTIN of any other person instead of his own.
  4. He submits false information during registration.
  5. He gives wrong information while filing returns or files false returns.
  6. He gives wrong information or false information during assessment proceedings.
  7. He fails to submit GST with the Government that was deducted by him, within a period of 3 months from the date of such deduction.
  8. If TDS is deducted in contravention of provisions of GST, he is still liable to pay the same within three months from the date of such deduction. If such falsely deducted TDS is not submitted within the prescribed time, then it is an offense.
  9. He claims and obtains a refund of CGST or SGST by fraud.
  10. He claims Input Tax Credit without the actual receipt of goods or services.
  11. He understates his sales during the period to evade tax.
  12. He transports or effects movement of goods without proper documentation.
  13. He supplies goods that will be confiscated by law.
  14. He destroys or tampers with, the goods that have been confiscated.
  15. He does not register himself even though he is liable to do so.
  16. He does not deduct TDS wherever applicable or deducts lesser than prescribed amount.
  17. He does not collect TCS wherever applicable or collects lesser than prescribed amount.
  18. He does not distribute credit properly or distribute against the provisions of law being an Input Service Distributor.
  19. He obstructs the officer in the performance of his duties.
  20. He does not maintain proper books of accounts as required mandatorily by law
  21. He intentionally destroys any evidence.



Penalty In GST:

For cases with no intention of fraud or tax evasion

An offender not paying tax or making short payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000.

Must Check: GST Tax Rate in India: Final GST Rate Out

For cases of fraud

An offender has to pay a penalty amount of tax evaded/short deducted etc., i.e., 100% penalty, subject to a minimum of Rs. 10,000.

Additional penalties as follows-

Tax amount involved 50 lakhs 100 lakhs 250 lakhs
Jail term Upto 1 year Upto 3 years Upto 5 year
Fine In all three cases

Cases of fraud also face penalties, prosecution and arrest.

Appeals In GST:

A taxable person, who is unhappy with the order passed by an adjudicating officer, can appeal against such order to the First Appellate Authority. A competent authority that has the power to pass a decision or an order under the Act is known as the “adjudicating officer.”

Having a four-level appeal structure, the GST provides all unhappy taxpayers to reach out to the Government. The second level after the First Appellate Authority is the Appellate Tribunal. After the Appellate Tribunal, the taxpayer can reach out to the High Court. The last resort left with the taxpayer is the Supreme Court.

All appeals shall only be entertained provided the same is filed as per prescribed forms, and minimum fees are paid. The fee for an appeal shall be:

  1. 100% of the tax amount, interest, fee, penalty, arising from such challenged order


  1. 10% of the disputed amount.

The above amount of 10% can increase up to 25% of the disputed amount, where the disputed tax amount is above INR 25 Crores.

On the other hand, where the Commissioner of GST or an officer is the appealing person, then no such prepayment of fees is required.

Stay tuned with us for more updates and keep browsing our site.

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