TaxTMI 
TaxTMI 
Offences, Penalties, Prosecution and Compounding
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....x credit by an Input Service Distributor in violation of Section 20; 10) Furnishing false information or falsification of financial records or furnishing of fake accounts/ documents with intent to evade payment of tax; 11) Failure to register despite being liable to pay tax; 12) Furnishing false information regarding registration particulars either at the time of applying for registration or subsequently; 13) Obstructing or preventing any official in discharge of his duty; 14) Transporting goods without prescribed documents; 15) Suppressing turnover leading to tax evasion; 16) Failure to maintain accounts/documents in the manner specified in the Act or failure to retain accounts/documents for the period specified in the Act; 17) Failure to furnish information/documents required by an officer in terms of the Act/Rules or furnishing false information/documents during the course of any proceeding; 18) Supplying/transporting/storing any goods liable to confiscation; 19) Issuing invoice or document using GSTIN of another person; 20) Tampering/destroying any material evidence; 21) Disposing of /tampering with goods detained/ seized/attached under the Act. Q 2. What is ....
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....ucted or short collected, or * A sum of ₹ 10,000/-. * Further Section 122(2) provides that any registered person who has not paid tax or makes a short payment of taxon supplies shall be a liable to penalty which will be the higher of: * 10% of the tax not paid or short paid, or * ₹ 10,000/- Q 5. Is any penalty prescribed for any person other than the taxable person? Ans. Yes. Section 122(3) provides for levy of penalty extending to ₹ 25,000/- for any person who- * aids or abets any of the 21 offences, * deals in any way (whether receiving, supplying, storing or transporting) with goods that are liable to confiscation, * receives or deals with supply of services in contravention of the Act, * fails to appear before an authority who has issued a summon, * fails to issue any invoice for a supply or account for any invoice in his books of accounts. Q 6. What is the penalty provided for any contravention for which no separate penalty has been prescribed under CGST/SGST Act? Ans. Section 125 of the CGST/SGST Act provides that any person who contravenes any provision of the Act or the rules made under this Act for which no separate penalty has been ....
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.... contravention of any provision of this Act and such contravention results in evasion of tax payable under the Act, or * does not account for any goods in the manner required under the Act, or * supplies goods that are liable to tax under the Act without applying for registration, or * uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of CGST/SGST Act (unless used without knowledge of owner) * contravenes any provision of the Act/Rules with the intention of evading payment of tax. Q 11. What happens to the goods upon confiscation of goods by the proper officer? Ans. Upon confiscation, the title in the confiscated goods shall vest in the Government and every Police officer to whom the proper officer makes a request in this behalf, shall assist in taking possession of the goods. Q 12. After confiscation, is it required to give option to the person to redeem the goods? Ans. Yes. In terms of section 130(2), the Owner or the person in-charge of the goods liable to confiscation is to be given the option for fine (not exceeding market price of confiscated goods) in lieu of confiscation. This fine shall be in addition to the ta....
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....rescribed on conviction of any offence under the CGST/SGST Act? Ans. The scheme of punishment provided in section 132(1) is as follows: Offence involving-- Punishment (Imprisonment extending to--) Tax evaded exceeding ₹ 5 crore or repeat offender250 lakh 5 years and fine Tax evaded between ₹ 2 crore and ₹ 5 crore 3 years and fine Tax evaded between ₹ 1 crore and ₹ 2 crore 1 years and fine * False records * Obstructing officer * Tamper records 6 months Q 17. What are cognizable and non-cognizable offences under CGST/SGST Act? Ans. In terms of Section 132(4) and 132(5) of CGST/SGST Act * all offences where the evasion of tax is less than ₹ 5 crores shall be non-cognizable and bailable, * all offences where the evasion of tax exceeds ₹ 5 crores shall be cognizable and non- bailable. Q 18. Is prior sanction of competent authority mandatory for initiating prosecution? Ans. Yes. No person shall be prosecuted for any offence without the prior sanction of the designated authority. Q 19. Is 'mensrea' or culpable mental state necessary for prosecution under CGST/SGST Act? Ans. Yes. However, Section 135 p....