1. Standardised PPT on GST
Indirect Taxes Committee
The Institute of Chartered Accountants of India

2. Disclaimer and Copy right
This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at
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This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI.
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3. Offences and Penalties
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4. Offences and Penalties – Sec 122
Nature of Offence
Prescribed Penalty
Supplies any goods without invoice
Issues invoice without supply of goods
Collects tax amount but does not pay the same into the appropriate government treasury
Collects tax in contravention of the Act
Fails to deduct or collect tax and also fails to pay it to the appropriate governments
Takes input tax credit without receipt of goods
Obtains refund by fraud
Manipulates financial records
Fails to get registered
Gives false information
Transports taxable goods without documents
Fails to maintain books of accounts.
Fails to provide information and required documents.
Takes or distributes credit in violation
Obstructs or prevents a officer in discharge of duty
Suppresses turnover
Tampers or destroys evidence
Disposes or tampers goods detailed or seized etc
Higher of following:
Rs. 10,000/- or
An amount equivalent to the amount of tax evaded/not deducted/collected or input tax credit availed or distributed or refund claimed in the matter
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5. Offences and Penalties – Sec 122
Nature of Offence
Prescribed Penalty
Non payment or short payment of tax or erroneous refund or wrong availment or utilisation of input tax credit by a registered person
(a) for reason other than fraud or any wilful misstatement or suppression of facts
(b) for reason of fraud or any wilful misstatement or suppression of facts
(a) Higher of following:
Rs. 10,000/- or
10% of tax due
(b) Higher of the following:
1. Rs 10,000/- or
2. Tax due
Applicable to any person who aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section 85(1); or
Who acquires possession of, or deals with any goods which he knows or has reason to believe are liable to confiscation;
Receives any supply of services in contravention
Fails to appear before GST officer to honour the summons;
Fails to issue invoice or record it
Rs. 25,000/-
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6. Offences and Penalties – Sec 123, 124 & 125
Nature of Offence
Prescribed Penalty
Failure to Furnish information return u/c 150
Rs. 100/ day for the period during which such failure continues
Subject to maximum penalty
of Rs. 25,000
Failure to furnish any information or return under section 151,—
without reasonable cause fails to furnish such information or return as may be required under that section, or
wilfully furnishes or causes to furnish any information or return which he knows to be false.
Upto Rs fine
in case of a continuing offence to a further fine which may extend to Rs. 100/ day after the first day during which the offence continues
subject to a maximum limit of Rs. 25,000/-
General Penalty – contravention of any provisions of this Act or any rules for which no penalty is separately provided
Upto Rs
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7. General Discipline related to Penalty – Sec 126
No Penalty for minor breach/mistake where the tax involved is less than Rs. 5,000/- and are easily rectifiable.
No penalty will be imposed without issuing SCN or giving personal hearing
Penalty cannot be levied suo-moto on contravention. Reasonable explanation needs to be provided by the Officer
For voluntary disclosure of non-payment of tax – consideration while levying penalty
S-126 will not apply, where the penalty is expressly prescribed under the Act as either a fixed sum or expressed as a fixed percentage
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8. Detention, seizure and confiscation of goods and / or conveyances – Sec 129 and 130
Sec No.
Nature of Offence
Repercussion
129
Applicable to any person who:
Transports or stores any goods while in transit in violation of provision of Act; or
Detention / seizure of goods and conveyance used for transport of goods. Can be released on
Where owner comes forward
Payment of an amount of 2% of value of goods or twenty five thousand rupees, whichever is less, in case of exempted goods.
Payment of tax and penalty (100% of tax) for goods other than exempted goods, OR
(b) Where owner does not come forward
Payment of an amount of 5% of value of goods or twenty five thousand rupees, whichever is less, in case of exempted goods
Payment of tax and penalty (50% of value of goods-tax paid) in other cases
(c) Security equivalent to the amount as stated in (a) or (b)
© Indirect Taxes Committee, ICAI

9. Detention, seizure and confiscation of goods and / or conveyances – Sec 129 and 130
Sec No
Nature of Offence
Repercussion
130
Applicable to any person who:
Supplies / receives goods in contravention of any of the provisions of this Act leading to evasion of tax; OR does not account for any goods on which he is liable to pay tax OR supplies goods liable to tax without having applied for the registration OR contravenes provisions of this Act with intent to evade payment of tax OR uses conveyance as means of transport for carriage of taxable goods in contravention of this Act
All such goods and / or conveyance shall be liable to confiscation and the person shall be liable to penalty under section 122
Option to pay fine in lieu of confiscation
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10. Prosecution and Compounding of Offences
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11. Prosecution and Compounding of Offences – Sec 132
Provides for power to initiate legal proceedings against the offenders who commits any of the 12 enlisted offences
Offences include clandestine removal of goods, retention of collected taxes beyond 3 months, irregular availment or utilization of input tax credit, obtaining fraudulent refund, fabrication of financial records, abatement etc.
Amount of Tax Evaded or ITC wrongly availed or utilised or Refund wrongly taken
Period of Maximum Imprisonment and Fine
Exceeding Rs. 500 Lakhs
5 Yrs. and Fine
Exceeding Rs. 200 Lakhs upto Rs. 500 Lakhs
3 Yrs. and Fine
Exceeding Rs. 100 Lakhs upto Rs. 200 Lakhs
1 Yr. and Fine
Commits/ abets in the commission of certain specified offences
Imprisonment up to 6 months and/ or fine
In case of repetition of Offence
without any specific and special reason as recorded in the order by the court the term of the imprisonment should not be less than 6 months.
All offences are non-cognizable and bailable except the cases where tax evasion is more than Rs. 500 Lakhs.
© Indirect Taxes Committee, ICAI

12. Prosecution and Compounding of Offences – Sec 134, 135, 136 and 137
Offences under this Act to be tried only before the Court of Judicial Magistrate First Class or above only with prior approval of designated authority. (Sec 134)
Obligation cast on the offender to prove the absence of mens-rea, else its implied that offence committed intentionally with guilty mind. (Sec 135)
Statement recorded during the course of investigation or enquiry relevant to prove the truthfulness of the facts when (Sec 136):
Made by person not available during proceedings
Court admits that statement as evidence after examining the person making the statement as witness.
Offence committed by Company : person-in-charge such as Director, Secretary, Manager etc., considered guilty and liable for punishment along with company (Sec 137)
Offence Committed by Partnership Firm, Limited Liability Partnership, Hindu Undivided Family or Trust : Partner/ Karta of Family/ Managing Trustee of the Trust deemed to be guilty. (Sec 137)
If proved that person was unaware or took suitable precautions to prevent offence – No punishment
© Indirect Taxes Committee, ICAI

13. Compounding of Offences : Sec 138
Compounding is available only one time in respect of certain specified offences
Compounding is not available for the subsequent time in respect of other offences and offences under SGST and IGST, if in the previous compounding case, value of supplies exceeds Rs. 1 Crore.
A person convicted for an offence under this Act cannot apply for compounding
A person accused of committing certain specified offences cannot apply for compounding
Compounding shall be allowed only after making payment of tax, interest, and penalty.
Minimum Compounding amount = Rs. 10,000/- or 50% of tax involved whichever is higher.
Maximum compounding amount = Rs. 30,000/- or 150% of tax whichever is higher
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14. Thank You For any Clarification, Please Contact
Indirect Taxes Committee of ICAI
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