Penalty amount u/s 122 (1) (ii)- 10000 or higher of 10K/100%

[SUSHIL BANSAL]

Dear Friends,

Penal provisions u/s 122 (1) (ii) are for issuing invoice without supply. My querry is whether the penalty amount will be 10000/- or higher of 10000 or 100% of tax evaded.As per my understanding in issuing invoice without supply there is no tax evasion as tax already paid by our client on such supplies. Further if the penalty amount to be Rs. 10000 only then whether this will be 10000 per such invoice or total 10000.Plz guide.

AI Summary

Debate on GST Penalty: Is It a Fixed Rs. 10,000 or Higher of Rs. 10,000 and 100% of Tax? A discussion on the Goods and Services Tax (GST) forum revolves around the penalty under Section 122(1)(ii) for issuing invoices without actual supply. The main query questions whether the penalty is a fixed Rs. 10,000 or the higher of Rs. 10,000 and 100% of the tax involved. Responses clarify that issuing an invoice without supply is an offense, attracting a penalty of Rs. 10,000 or the tax amount, whichever is higher. The debate includes interpretations of the law, the nature of tax evasion, and the implications for both suppliers and recipients regarding Input Tax Credit (ITC) and penalties. Participants emphasize the complexity and evolving nature of GST law, suggesting professional consultation for specific cases.