PENALTY UNDER SECTION 122(1)(II) OF THE GST ACT

[Sadanand Bulbule]

Dear experts

Section 122(1)(ii) of the GST Act speaks about the offence of 'issue of invoices without the supply of goods or services or both'. However in exceptional cases, such invoices do not lead to the wrongful availment or utilisation of input tax credit. The CBIC Circular No. 171/03/2022 dated 06/07/2022 has illustrated such kind of events for the purpose levy of only penalty in a particular situation or adjudication under Section 74 and levy of penalty under section 122(1)(vii) in proven situations of wrongful availment or utilisation of input tax credit.

Query:

What is the amount of penalty under Section 122(1)(ii) for the offence of issue of invoices without the actual supply of goods or services or both not leading to the wrongful availment or uitlisation of input tax credit?

Experts to throw spotlight.

AI Summary

Debate on Penalties for Invoices Without Supply Under GST Act Section 122(1)(ii) and CBIC Circular No. 171/03/2022 A discussion on the penalty under Section 122(1)(ii) of the GST Act focuses on the issuance of invoices without actual supply of goods or services, which does not lead to wrongful utilization of input tax credit. The CBIC Circular No. 171/03/2022 addresses penalties in such cases. One expert argues for a penalty of Rs.10,000, while another suggests Rs.25,000, citing a need for amendment. Further discussion highlights the role of Section 74, which provides statutory immunity to certain parties in penalty proceedings, emphasizing the importance of understanding 'deemed to be concluded' in legal terms. Various contributors share insights and legal interpretations, referencing relevant case law and statutory explanations.