Offences and Penalties | Goods and Services Tax (GST) - B Com PDF Download

 Page 1


  
  
 
 
 
  
 
 
 
 
 OFFANCES AND PENALTIES 
 Penalty for Certain Offences [Section 122 of CGST Act, 
2017] 
? Section 122(1) of CGST Act, 2017 provides 
(i) Without issue of any invoice, supplies any goods or services or both or issue an 
incorrect or false invoice with regard to any such supply; 
(ii) Without supply of goods or services or both, any invoice or bill issued, in 
violation of the provisions of this Act or the rules made there under; 
(iii) Collects any amount as tax but fails to pay the same to the Government 
beyond a period of three months from the date on which such payment 
becomes due; 
(iv) In contravention if the provision of this Act, collects any tax but beyond the 
period of three months from the date on which such payment becomes due, 
fails to pay the same to the Government. 
(v) In accordance with the provisions of section 51(1), fails to deduct the tax or 
deducts an amount which is less than the amount required to be collected under 
the said sub-section or where he fails to pay to the Government the amount 
collected as tax u/s 52(3); 
(vi) In accordance with the provisions of section 51(1), fails to collect tax, or 
collects an amount which is less than the amount required to be collected under 
the said sub-section or u/s 52(3), where he fails to pay to the Government the 
amount collected. 
(vii) Without actual receipt of goods or services or both either fully or partially 
takes or utilises input tax credit, in contravention of this Act or the rules made 
there under; 
(viii) Under this act, fraudulently obtains refund of tax; 
(ix) In contravention of section 20, takes or distributes input tax credit or the rules 
made there under; 
(x) Under this Act, with an intention to evade payment of tax due, falsifies or 
substitutes financial records or produces fake accounts or documents or 
furnishes any false information or return. 
(xi) Under this Act is liable to be registered but fails to obtain registration; 
(xii) With regard to registration particulars, furnishes any false information, either 
at the time of applying for registration, or subsequently; 
(xiii) Under this Act, obstructs or prevent any officer in discharge of his duty; 
Page 2


  
  
 
 
 
  
 
 
 
 
 OFFANCES AND PENALTIES 
 Penalty for Certain Offences [Section 122 of CGST Act, 
2017] 
? Section 122(1) of CGST Act, 2017 provides 
(i) Without issue of any invoice, supplies any goods or services or both or issue an 
incorrect or false invoice with regard to any such supply; 
(ii) Without supply of goods or services or both, any invoice or bill issued, in 
violation of the provisions of this Act or the rules made there under; 
(iii) Collects any amount as tax but fails to pay the same to the Government 
beyond a period of three months from the date on which such payment 
becomes due; 
(iv) In contravention if the provision of this Act, collects any tax but beyond the 
period of three months from the date on which such payment becomes due, 
fails to pay the same to the Government. 
(v) In accordance with the provisions of section 51(1), fails to deduct the tax or 
deducts an amount which is less than the amount required to be collected under 
the said sub-section or where he fails to pay to the Government the amount 
collected as tax u/s 52(3); 
(vi) In accordance with the provisions of section 51(1), fails to collect tax, or 
collects an amount which is less than the amount required to be collected under 
the said sub-section or u/s 52(3), where he fails to pay to the Government the 
amount collected. 
(vii) Without actual receipt of goods or services or both either fully or partially 
takes or utilises input tax credit, in contravention of this Act or the rules made 
there under; 
(viii) Under this act, fraudulently obtains refund of tax; 
(ix) In contravention of section 20, takes or distributes input tax credit or the rules 
made there under; 
(x) Under this Act, with an intention to evade payment of tax due, falsifies or 
substitutes financial records or produces fake accounts or documents or 
furnishes any false information or return. 
(xi) Under this Act is liable to be registered but fails to obtain registration; 
(xii) With regard to registration particulars, furnishes any false information, either 
at the time of applying for registration, or subsequently; 
(xiii) Under this Act, obstructs or prevent any officer in discharge of his duty; 
(xiv) As specified in this behalf, transports any taxable goods without the cover of 
documents; 
(xv) Under this Act, suppresses his turnover leading to evasion of tax; 
(xvi) In accordance with the provision of this Act or rules made there under, fails to 
keep, maintain or retain books of account and other documents. 
(xvii) In accordance with the provision of this Act or rules made there under or 
furnishes false information or documents called by an officer or furnishes false 
information or documents during any proceedings under this Act. 
(xviii) Under this Act, supplies, transports or stores any goods which he has reasons 
to believe are liable to confiscation; 
(xix) By using the registration number, issues any invoice or document of another 
registered person. 
(xx) Tampers with, or destroys any material evidence or document; 
(xxi) Under this Act, disposes off or tampers with any goods that have been 
detained, seized or attached. 
 
? Section 122(2) of CGST Act, 2017 provides 
? Any goods or services or both supplied by any registered person on which any 
tax has not been paid or short-paid or erroneously refunded, or where the input 
tax credit has been wrongly availed or utilised- 
(a) Other than the reason of fraud or any willful misstatement or suppression 
of facts to evade tax, shall be liable to a penalty of Rs. 10,000 or 10% of 
the tax due from such person, whichever is higher 
(b) For reason of fraud or any willful misstatement or suppression of facts to 
evade tax, shall be liable to a penalty equal to Rs. 10,000 or the tax due 
from such person, whichever is higher. 
 
? Section 122(3z0 of CGST Act, 2017 provides 
? Any person who 
(a) Aids or abets or any of the offences specified in clauses (i) to (xxi) of 
section 122(1); 
(b) In any other manner deals with any goods which he knows or has reasons 
to believe are liable to confiscate under this Act or the rules made there 
under or acquires possession of, or in any way concerns himself in 
transporting, removing, depositing, keeping, concealing, supplying, or 
purchasing; 
(c) Receives or is in any way concerned with the supply of, or in any other 
manner deals with any supply of services which he knows or has reasons 
to believe are in contravention of any provisions of this Act or the rules 
made there under; 
(d) Before the officer of central tax, fails to appear, when issued with a 
summon for appearance to give evidence or produce a document in an 
inquiry; 
 
 Penalty for Failure to Furnish Information Return. 
[Section 123 of CGST Act, 2017] 
? Under section 150, an information is required to furnish by a person fails to do 
so within the period specified in the notice issued under sub-section (3) thereof, 
person shall be liable to pay a penalty of one hundred rupees for each day of the 
Page 3


  
  
 
 
 
  
 
 
 
 
 OFFANCES AND PENALTIES 
 Penalty for Certain Offences [Section 122 of CGST Act, 
2017] 
? Section 122(1) of CGST Act, 2017 provides 
(i) Without issue of any invoice, supplies any goods or services or both or issue an 
incorrect or false invoice with regard to any such supply; 
(ii) Without supply of goods or services or both, any invoice or bill issued, in 
violation of the provisions of this Act or the rules made there under; 
(iii) Collects any amount as tax but fails to pay the same to the Government 
beyond a period of three months from the date on which such payment 
becomes due; 
(iv) In contravention if the provision of this Act, collects any tax but beyond the 
period of three months from the date on which such payment becomes due, 
fails to pay the same to the Government. 
(v) In accordance with the provisions of section 51(1), fails to deduct the tax or 
deducts an amount which is less than the amount required to be collected under 
the said sub-section or where he fails to pay to the Government the amount 
collected as tax u/s 52(3); 
(vi) In accordance with the provisions of section 51(1), fails to collect tax, or 
collects an amount which is less than the amount required to be collected under 
the said sub-section or u/s 52(3), where he fails to pay to the Government the 
amount collected. 
(vii) Without actual receipt of goods or services or both either fully or partially 
takes or utilises input tax credit, in contravention of this Act or the rules made 
there under; 
(viii) Under this act, fraudulently obtains refund of tax; 
(ix) In contravention of section 20, takes or distributes input tax credit or the rules 
made there under; 
(x) Under this Act, with an intention to evade payment of tax due, falsifies or 
substitutes financial records or produces fake accounts or documents or 
furnishes any false information or return. 
(xi) Under this Act is liable to be registered but fails to obtain registration; 
(xii) With regard to registration particulars, furnishes any false information, either 
at the time of applying for registration, or subsequently; 
(xiii) Under this Act, obstructs or prevent any officer in discharge of his duty; 
(xiv) As specified in this behalf, transports any taxable goods without the cover of 
documents; 
(xv) Under this Act, suppresses his turnover leading to evasion of tax; 
(xvi) In accordance with the provision of this Act or rules made there under, fails to 
keep, maintain or retain books of account and other documents. 
(xvii) In accordance with the provision of this Act or rules made there under or 
furnishes false information or documents called by an officer or furnishes false 
information or documents during any proceedings under this Act. 
(xviii) Under this Act, supplies, transports or stores any goods which he has reasons 
to believe are liable to confiscation; 
(xix) By using the registration number, issues any invoice or document of another 
registered person. 
(xx) Tampers with, or destroys any material evidence or document; 
(xxi) Under this Act, disposes off or tampers with any goods that have been 
detained, seized or attached. 
 
? Section 122(2) of CGST Act, 2017 provides 
? Any goods or services or both supplied by any registered person on which any 
tax has not been paid or short-paid or erroneously refunded, or where the input 
tax credit has been wrongly availed or utilised- 
(a) Other than the reason of fraud or any willful misstatement or suppression 
of facts to evade tax, shall be liable to a penalty of Rs. 10,000 or 10% of 
the tax due from such person, whichever is higher 
(b) For reason of fraud or any willful misstatement or suppression of facts to 
evade tax, shall be liable to a penalty equal to Rs. 10,000 or the tax due 
from such person, whichever is higher. 
 
? Section 122(3z0 of CGST Act, 2017 provides 
? Any person who 
(a) Aids or abets or any of the offences specified in clauses (i) to (xxi) of 
section 122(1); 
(b) In any other manner deals with any goods which he knows or has reasons 
to believe are liable to confiscate under this Act or the rules made there 
under or acquires possession of, or in any way concerns himself in 
transporting, removing, depositing, keeping, concealing, supplying, or 
purchasing; 
(c) Receives or is in any way concerned with the supply of, or in any other 
manner deals with any supply of services which he knows or has reasons 
to believe are in contravention of any provisions of this Act or the rules 
made there under; 
(d) Before the officer of central tax, fails to appear, when issued with a 
summon for appearance to give evidence or produce a document in an 
inquiry; 
 
 Penalty for Failure to Furnish Information Return. 
[Section 123 of CGST Act, 2017] 
? Under section 150, an information is required to furnish by a person fails to do 
so within the period specified in the notice issued under sub-section (3) thereof, 
person shall be liable to pay a penalty of one hundred rupees for each day of the 
period during which the failure to furnish such return continues might be 
directed by proper officer. 
? Under this section, penalty imposed shall not exceed Rs. 5,000. 
 
 Fine for failure to furnish Statistics [Section 124 of CGST 
Act, 2017] 
? Under section 151, if any return or information furnished by any person- 
(a) Under this section, without reasonable cause fails to furnish such information 
or return as may be required, or 
(b) Wilfully furnishes or causes to furnish any information or return which he 
knows to be false, 
He shall be punishable with a fine which may extend to ten thousand rupees and 
in case of a continuing offence to a further fine which may extend to one hundred 
rupees for each day after the first day during which the offence continues subject 
to a maximum limit of Rs. 25,000. 
 
 General Penalty [Section 125 of CGST Act, 2017] 
The provisions of this Act or any rule made thereunder contravened by any person 
for which no penalty separately provided for in this Act, shall be liable to a penalty 
which may extend to twenty-five thousand rupees. 
 
 General Disciplines Related to Penalty [Section 126 of 
CGST Act, 2017] 
1. Under this Act, no offence shall impose any penalty for minor breaches of tax 
regulations or procedural requirements and in particular, any omission or mistake 
in documentation which is easily rectifiable and made without fraudulent intent or 
gross negligence. 
2. Under this Act, the penalty imposed shall depend on the facts and circumstances 
of each case and shall be commensurate with the degree and severity of the breach. 
3. Without giving person an opportunity of being heard, no penalty shall be 
imposed on any person. 
4. Under this Act, the officer impose penalty in an order for a breach of any law, 
regulation or procedural requirement, specify the nature of the breach and the 
applicable law, regulation or procedure under which the amount of penalty for the 
breach has been specified. 
5. Under this Act, when a person voluntarily discloses to an officer the 
circumstances of breach of law, regulation or procedural requirement prior to the 
discovery of the breach by the officer under this Act, when quantifying a penalty 
for that person, the proper officer may consider this fact as a mitigating factor. 
6. Under this Act, the provision of this section shall not apply in such cases, where 
the penalty specified is either a fixed sum or expressed as a fixed percentage. 
 
 Power to Impose Penalty in Certain Cases [Section 127 of 
CGST Act, 2017] 
Under section 62 or section 63 or section 64 or section 73 or section 74 or section 
129 or section 130, where the proper officer is of the view that a person is liable to 
a penalty and the same is not covered under any proceeding, an order levying such 
penalty after giving a reasonable opportunity of being heard issued by him. 
Page 4


  
  
 
 
 
  
 
 
 
 
 OFFANCES AND PENALTIES 
 Penalty for Certain Offences [Section 122 of CGST Act, 
2017] 
? Section 122(1) of CGST Act, 2017 provides 
(i) Without issue of any invoice, supplies any goods or services or both or issue an 
incorrect or false invoice with regard to any such supply; 
(ii) Without supply of goods or services or both, any invoice or bill issued, in 
violation of the provisions of this Act or the rules made there under; 
(iii) Collects any amount as tax but fails to pay the same to the Government 
beyond a period of three months from the date on which such payment 
becomes due; 
(iv) In contravention if the provision of this Act, collects any tax but beyond the 
period of three months from the date on which such payment becomes due, 
fails to pay the same to the Government. 
(v) In accordance with the provisions of section 51(1), fails to deduct the tax or 
deducts an amount which is less than the amount required to be collected under 
the said sub-section or where he fails to pay to the Government the amount 
collected as tax u/s 52(3); 
(vi) In accordance with the provisions of section 51(1), fails to collect tax, or 
collects an amount which is less than the amount required to be collected under 
the said sub-section or u/s 52(3), where he fails to pay to the Government the 
amount collected. 
(vii) Without actual receipt of goods or services or both either fully or partially 
takes or utilises input tax credit, in contravention of this Act or the rules made 
there under; 
(viii) Under this act, fraudulently obtains refund of tax; 
(ix) In contravention of section 20, takes or distributes input tax credit or the rules 
made there under; 
(x) Under this Act, with an intention to evade payment of tax due, falsifies or 
substitutes financial records or produces fake accounts or documents or 
furnishes any false information or return. 
(xi) Under this Act is liable to be registered but fails to obtain registration; 
(xii) With regard to registration particulars, furnishes any false information, either 
at the time of applying for registration, or subsequently; 
(xiii) Under this Act, obstructs or prevent any officer in discharge of his duty; 
(xiv) As specified in this behalf, transports any taxable goods without the cover of 
documents; 
(xv) Under this Act, suppresses his turnover leading to evasion of tax; 
(xvi) In accordance with the provision of this Act or rules made there under, fails to 
keep, maintain or retain books of account and other documents. 
(xvii) In accordance with the provision of this Act or rules made there under or 
furnishes false information or documents called by an officer or furnishes false 
information or documents during any proceedings under this Act. 
(xviii) Under this Act, supplies, transports or stores any goods which he has reasons 
to believe are liable to confiscation; 
(xix) By using the registration number, issues any invoice or document of another 
registered person. 
(xx) Tampers with, or destroys any material evidence or document; 
(xxi) Under this Act, disposes off or tampers with any goods that have been 
detained, seized or attached. 
 
? Section 122(2) of CGST Act, 2017 provides 
? Any goods or services or both supplied by any registered person on which any 
tax has not been paid or short-paid or erroneously refunded, or where the input 
tax credit has been wrongly availed or utilised- 
(a) Other than the reason of fraud or any willful misstatement or suppression 
of facts to evade tax, shall be liable to a penalty of Rs. 10,000 or 10% of 
the tax due from such person, whichever is higher 
(b) For reason of fraud or any willful misstatement or suppression of facts to 
evade tax, shall be liable to a penalty equal to Rs. 10,000 or the tax due 
from such person, whichever is higher. 
 
? Section 122(3z0 of CGST Act, 2017 provides 
? Any person who 
(a) Aids or abets or any of the offences specified in clauses (i) to (xxi) of 
section 122(1); 
(b) In any other manner deals with any goods which he knows or has reasons 
to believe are liable to confiscate under this Act or the rules made there 
under or acquires possession of, or in any way concerns himself in 
transporting, removing, depositing, keeping, concealing, supplying, or 
purchasing; 
(c) Receives or is in any way concerned with the supply of, or in any other 
manner deals with any supply of services which he knows or has reasons 
to believe are in contravention of any provisions of this Act or the rules 
made there under; 
(d) Before the officer of central tax, fails to appear, when issued with a 
summon for appearance to give evidence or produce a document in an 
inquiry; 
 
 Penalty for Failure to Furnish Information Return. 
[Section 123 of CGST Act, 2017] 
? Under section 150, an information is required to furnish by a person fails to do 
so within the period specified in the notice issued under sub-section (3) thereof, 
person shall be liable to pay a penalty of one hundred rupees for each day of the 
period during which the failure to furnish such return continues might be 
directed by proper officer. 
? Under this section, penalty imposed shall not exceed Rs. 5,000. 
 
 Fine for failure to furnish Statistics [Section 124 of CGST 
Act, 2017] 
? Under section 151, if any return or information furnished by any person- 
(a) Under this section, without reasonable cause fails to furnish such information 
or return as may be required, or 
(b) Wilfully furnishes or causes to furnish any information or return which he 
knows to be false, 
He shall be punishable with a fine which may extend to ten thousand rupees and 
in case of a continuing offence to a further fine which may extend to one hundred 
rupees for each day after the first day during which the offence continues subject 
to a maximum limit of Rs. 25,000. 
 
 General Penalty [Section 125 of CGST Act, 2017] 
The provisions of this Act or any rule made thereunder contravened by any person 
for which no penalty separately provided for in this Act, shall be liable to a penalty 
which may extend to twenty-five thousand rupees. 
 
 General Disciplines Related to Penalty [Section 126 of 
CGST Act, 2017] 
1. Under this Act, no offence shall impose any penalty for minor breaches of tax 
regulations or procedural requirements and in particular, any omission or mistake 
in documentation which is easily rectifiable and made without fraudulent intent or 
gross negligence. 
2. Under this Act, the penalty imposed shall depend on the facts and circumstances 
of each case and shall be commensurate with the degree and severity of the breach. 
3. Without giving person an opportunity of being heard, no penalty shall be 
imposed on any person. 
4. Under this Act, the officer impose penalty in an order for a breach of any law, 
regulation or procedural requirement, specify the nature of the breach and the 
applicable law, regulation or procedure under which the amount of penalty for the 
breach has been specified. 
5. Under this Act, when a person voluntarily discloses to an officer the 
circumstances of breach of law, regulation or procedural requirement prior to the 
discovery of the breach by the officer under this Act, when quantifying a penalty 
for that person, the proper officer may consider this fact as a mitigating factor. 
6. Under this Act, the provision of this section shall not apply in such cases, where 
the penalty specified is either a fixed sum or expressed as a fixed percentage. 
 
 Power to Impose Penalty in Certain Cases [Section 127 of 
CGST Act, 2017] 
Under section 62 or section 63 or section 64 or section 73 or section 74 or section 
129 or section 130, where the proper officer is of the view that a person is liable to 
a penalty and the same is not covered under any proceeding, an order levying such 
penalty after giving a reasonable opportunity of being heard issued by him. 
 
 Power to Waive Penalty or Fee or Both [Section 128 of 
CGST Act, 2017] 
Any penalty referred in section 122 or section 125, the Government may by notification, 
waive in part or full or any late fee referred to in section 47 for such class of taxpayers and 
under such mitigating circumstances as may be specified therein on the recommendation of 
the council. 
 
 Detention, Seizure and Release of Goods and Conveyances 
in Transit [Section 129 of CGST Act, 2017] 
? [Section 129(1) of CGST Act, 2017] 
? In this Act, notwithstanding anything contained, where any goods or stores are 
transported by any person while they are in contravention of the provisions of 
this Act or the rules made thereunder, as a means of transport, conveyance 
used for carrying the said goods and documents relating to such goods and 
conveyance shall be liable to detention or seizure, shall be released- 
(a) On payment of the applicable tax and penalty equal to 100% of the tax 
payable on such goods and, in case of exempted goods, on payment of an 
amount equal to 2% of the value of goods or Rd. 25,000, whichever is less 
where for the payment of such tax and penalty done by the owner. 
(b) On payment of the applicable tax and penalty equal to the 50% of the value 
of the goods reduced by the tax amount paid thereon and, in case of 
exempted goods, on payment of an amount equal to 5% of the value of 
goods or Rs. 25,000, whichever is less, where the owner of the goods does 
not come forward for payment of such tax and penalty; 
(c) Under clause (a) or clause (b), upon furnishing a security equivalent to the 
amount payable, in such form and manner as may be prescribed: 
Provided that without serving an order of detention or seizure on the person 
transporting the goods, no such goods or conveyance shall be detained or 
seized. 
 
? [Section 129(2) of CGST Act, 2017] 
? The provisions of section 67(6) shall apply for detention and seizure of goods 
and conveyances. 
 
? [Section 129(3) of CGST Act, 2017] 
? A notice of detaining or seizing goods or conveyance shall be issued by the 
proper officer, specifying the tax and penalty payable and thereafter, pass an 
order for payment of tax and penalty under clause (a) or clause (b) or clause 
(c). 
 
? [Section 129(4) of CGST Act, 2017] 
? Under sub-section (3), no tax, interest or penalty shall be determined without 
giving the person concerned an opportunity of being heard. 
 
? [Section 129(5) of CGST Act, 2017] 
? Referred in sub-section (1), on payment of amount, all proceedings in respect 
of the notice specified in sub-section (3) shall be deemed to be concluded. 
Page 5


  
  
 
 
 
  
 
 
 
 
 OFFANCES AND PENALTIES 
 Penalty for Certain Offences [Section 122 of CGST Act, 
2017] 
? Section 122(1) of CGST Act, 2017 provides 
(i) Without issue of any invoice, supplies any goods or services or both or issue an 
incorrect or false invoice with regard to any such supply; 
(ii) Without supply of goods or services or both, any invoice or bill issued, in 
violation of the provisions of this Act or the rules made there under; 
(iii) Collects any amount as tax but fails to pay the same to the Government 
beyond a period of three months from the date on which such payment 
becomes due; 
(iv) In contravention if the provision of this Act, collects any tax but beyond the 
period of three months from the date on which such payment becomes due, 
fails to pay the same to the Government. 
(v) In accordance with the provisions of section 51(1), fails to deduct the tax or 
deducts an amount which is less than the amount required to be collected under 
the said sub-section or where he fails to pay to the Government the amount 
collected as tax u/s 52(3); 
(vi) In accordance with the provisions of section 51(1), fails to collect tax, or 
collects an amount which is less than the amount required to be collected under 
the said sub-section or u/s 52(3), where he fails to pay to the Government the 
amount collected. 
(vii) Without actual receipt of goods or services or both either fully or partially 
takes or utilises input tax credit, in contravention of this Act or the rules made 
there under; 
(viii) Under this act, fraudulently obtains refund of tax; 
(ix) In contravention of section 20, takes or distributes input tax credit or the rules 
made there under; 
(x) Under this Act, with an intention to evade payment of tax due, falsifies or 
substitutes financial records or produces fake accounts or documents or 
furnishes any false information or return. 
(xi) Under this Act is liable to be registered but fails to obtain registration; 
(xii) With regard to registration particulars, furnishes any false information, either 
at the time of applying for registration, or subsequently; 
(xiii) Under this Act, obstructs or prevent any officer in discharge of his duty; 
(xiv) As specified in this behalf, transports any taxable goods without the cover of 
documents; 
(xv) Under this Act, suppresses his turnover leading to evasion of tax; 
(xvi) In accordance with the provision of this Act or rules made there under, fails to 
keep, maintain or retain books of account and other documents. 
(xvii) In accordance with the provision of this Act or rules made there under or 
furnishes false information or documents called by an officer or furnishes false 
information or documents during any proceedings under this Act. 
(xviii) Under this Act, supplies, transports or stores any goods which he has reasons 
to believe are liable to confiscation; 
(xix) By using the registration number, issues any invoice or document of another 
registered person. 
(xx) Tampers with, or destroys any material evidence or document; 
(xxi) Under this Act, disposes off or tampers with any goods that have been 
detained, seized or attached. 
 
? Section 122(2) of CGST Act, 2017 provides 
? Any goods or services or both supplied by any registered person on which any 
tax has not been paid or short-paid or erroneously refunded, or where the input 
tax credit has been wrongly availed or utilised- 
(a) Other than the reason of fraud or any willful misstatement or suppression 
of facts to evade tax, shall be liable to a penalty of Rs. 10,000 or 10% of 
the tax due from such person, whichever is higher 
(b) For reason of fraud or any willful misstatement or suppression of facts to 
evade tax, shall be liable to a penalty equal to Rs. 10,000 or the tax due 
from such person, whichever is higher. 
 
? Section 122(3z0 of CGST Act, 2017 provides 
? Any person who 
(a) Aids or abets or any of the offences specified in clauses (i) to (xxi) of 
section 122(1); 
(b) In any other manner deals with any goods which he knows or has reasons 
to believe are liable to confiscate under this Act or the rules made there 
under or acquires possession of, or in any way concerns himself in 
transporting, removing, depositing, keeping, concealing, supplying, or 
purchasing; 
(c) Receives or is in any way concerned with the supply of, or in any other 
manner deals with any supply of services which he knows or has reasons 
to believe are in contravention of any provisions of this Act or the rules 
made there under; 
(d) Before the officer of central tax, fails to appear, when issued with a 
summon for appearance to give evidence or produce a document in an 
inquiry; 
 
 Penalty for Failure to Furnish Information Return. 
[Section 123 of CGST Act, 2017] 
? Under section 150, an information is required to furnish by a person fails to do 
so within the period specified in the notice issued under sub-section (3) thereof, 
person shall be liable to pay a penalty of one hundred rupees for each day of the 
period during which the failure to furnish such return continues might be 
directed by proper officer. 
? Under this section, penalty imposed shall not exceed Rs. 5,000. 
 
 Fine for failure to furnish Statistics [Section 124 of CGST 
Act, 2017] 
? Under section 151, if any return or information furnished by any person- 
(a) Under this section, without reasonable cause fails to furnish such information 
or return as may be required, or 
(b) Wilfully furnishes or causes to furnish any information or return which he 
knows to be false, 
He shall be punishable with a fine which may extend to ten thousand rupees and 
in case of a continuing offence to a further fine which may extend to one hundred 
rupees for each day after the first day during which the offence continues subject 
to a maximum limit of Rs. 25,000. 
 
 General Penalty [Section 125 of CGST Act, 2017] 
The provisions of this Act or any rule made thereunder contravened by any person 
for which no penalty separately provided for in this Act, shall be liable to a penalty 
which may extend to twenty-five thousand rupees. 
 
 General Disciplines Related to Penalty [Section 126 of 
CGST Act, 2017] 
1. Under this Act, no offence shall impose any penalty for minor breaches of tax 
regulations or procedural requirements and in particular, any omission or mistake 
in documentation which is easily rectifiable and made without fraudulent intent or 
gross negligence. 
2. Under this Act, the penalty imposed shall depend on the facts and circumstances 
of each case and shall be commensurate with the degree and severity of the breach. 
3. Without giving person an opportunity of being heard, no penalty shall be 
imposed on any person. 
4. Under this Act, the officer impose penalty in an order for a breach of any law, 
regulation or procedural requirement, specify the nature of the breach and the 
applicable law, regulation or procedure under which the amount of penalty for the 
breach has been specified. 
5. Under this Act, when a person voluntarily discloses to an officer the 
circumstances of breach of law, regulation or procedural requirement prior to the 
discovery of the breach by the officer under this Act, when quantifying a penalty 
for that person, the proper officer may consider this fact as a mitigating factor. 
6. Under this Act, the provision of this section shall not apply in such cases, where 
the penalty specified is either a fixed sum or expressed as a fixed percentage. 
 
 Power to Impose Penalty in Certain Cases [Section 127 of 
CGST Act, 2017] 
Under section 62 or section 63 or section 64 or section 73 or section 74 or section 
129 or section 130, where the proper officer is of the view that a person is liable to 
a penalty and the same is not covered under any proceeding, an order levying such 
penalty after giving a reasonable opportunity of being heard issued by him. 
 
 Power to Waive Penalty or Fee or Both [Section 128 of 
CGST Act, 2017] 
Any penalty referred in section 122 or section 125, the Government may by notification, 
waive in part or full or any late fee referred to in section 47 for such class of taxpayers and 
under such mitigating circumstances as may be specified therein on the recommendation of 
the council. 
 
 Detention, Seizure and Release of Goods and Conveyances 
in Transit [Section 129 of CGST Act, 2017] 
? [Section 129(1) of CGST Act, 2017] 
? In this Act, notwithstanding anything contained, where any goods or stores are 
transported by any person while they are in contravention of the provisions of 
this Act or the rules made thereunder, as a means of transport, conveyance 
used for carrying the said goods and documents relating to such goods and 
conveyance shall be liable to detention or seizure, shall be released- 
(a) On payment of the applicable tax and penalty equal to 100% of the tax 
payable on such goods and, in case of exempted goods, on payment of an 
amount equal to 2% of the value of goods or Rd. 25,000, whichever is less 
where for the payment of such tax and penalty done by the owner. 
(b) On payment of the applicable tax and penalty equal to the 50% of the value 
of the goods reduced by the tax amount paid thereon and, in case of 
exempted goods, on payment of an amount equal to 5% of the value of 
goods or Rs. 25,000, whichever is less, where the owner of the goods does 
not come forward for payment of such tax and penalty; 
(c) Under clause (a) or clause (b), upon furnishing a security equivalent to the 
amount payable, in such form and manner as may be prescribed: 
Provided that without serving an order of detention or seizure on the person 
transporting the goods, no such goods or conveyance shall be detained or 
seized. 
 
? [Section 129(2) of CGST Act, 2017] 
? The provisions of section 67(6) shall apply for detention and seizure of goods 
and conveyances. 
 
? [Section 129(3) of CGST Act, 2017] 
? A notice of detaining or seizing goods or conveyance shall be issued by the 
proper officer, specifying the tax and penalty payable and thereafter, pass an 
order for payment of tax and penalty under clause (a) or clause (b) or clause 
(c). 
 
? [Section 129(4) of CGST Act, 2017] 
? Under sub-section (3), no tax, interest or penalty shall be determined without 
giving the person concerned an opportunity of being heard. 
 
? [Section 129(5) of CGST Act, 2017] 
? Referred in sub-section (1), on payment of amount, all proceedings in respect 
of the notice specified in sub-section (3) shall be deemed to be concluded. 
 
? [Section 129(6) of CGST Act, 2017] 
? As provided in sub-section (1), where the person transporting any goods or the 
owner of the goods fails to pay the amount of tax and penalty within seven 
days of such detention or seizure, in accordance with the provisions of section 
130, further proceedings shall be initiated. 
With passage of time, where the detained or seized goods are perishable or 
hazardous in nature or are likely to depreciate in value, the said period of seven 
days may be reduced by the proper officer. 
 
Confiscation of Goods or conveyance and levy of penalty 
[Section 130 of CGST Act, 2017] 
? [Section 132(1) of CGST Act, 2017] 
? Whoever commits any of the following offences, namely- 
(a) Without issue of any invoice, supplies any goods or services or both, in 
violation of the provision of this Act or the rules made thereunder, with the 
intention to evade tax; 
(b) Without supply of goods or services or both, issue any invoice or bill, in 
violation of the provisions of this Act or the rules made thereunder leading to 
wrongful availment or utilisation of input tax credit or refund of tax; 
(c) Referred to in clause (b), avails input tax credit using such invoice or bill 
(d) Beyond a period of three months from the date on which such payment 
becomes due, collect any amount as tax but fails to pay the same to the 
Government. 
(e) Under clauses (a) to (d), evades tax, fraudulently avails input tax credit or 
fraudulently obtains refund and where such offence is not covered. 
(f) Under this Act, falsifies or substitutes financial records or produces fake 
accounts or documents or furnishes any false information with an intention to 
evade payment of tax due. 
(g) Under this Act, obstructs or prevents any officer in the discharge of his duty; 
(h) Under this Act or rules made thereunder, acquires, possession of, or in any way 
concerns himself in transporting, removing depositing, keeping, concealing, 
supplying or purchasing or in any manner deals with, any goods which he 
knows or has reasons to believe are liable to confiscation; 
(i) Receives or is in any way concerned with the supply of, or in any other manner 
deals with any supply of services which he knows or has reasons to believe are 
in contravention of any provisions of this Act or the rules made thereunder; 
(j) Tampers with or destroys any material evidence or documents; 
(k) Under this Act or the rules made thereunder, fails to supply any information 
which he is required to supply or supplies false information; or 
(l) Any of the offences mentioned in clauses (a) to (k) of this section, attempts to 
commit, or abets the commission, 
Shall be punishable- 
(i) Imprisonment for a term which may extend to five years and with fine, 
where the amount of tax evaded or the amount of input tax credit wrongly 
availed or utilised or the amount wrongly taken exceeds five hundred lakh 
rupees; 
(ii) Imprisonment for a term which may extend to three years and with fine, 
where the amount of tax evaded or the amount of input tax credit wrongly