OFFENCES/PENAL PROVISIONS CENTRAL GOODS AND SERVICES TAX ACT (CGST), 2017
The Act, declares the offences that attract penalty as a consequence, apart from the requirement to pay the tax and applicable interest. Some of the offences listed under this Act, may also attract prosecution but that depends on the gravity of the offence defined in that section.
OFFENCES/PENAL PROVISIONS
S.132(1)(i): Amount exceeding five hundred lakh rupees:
| SR. NO. | OFFENCE | PUNISHMENT | COGNIZABLE AND NON-BAILABLE
OR NON-COGNIZABLE AND BAILABLE |
| 1. | Supply without invoice:
Supplies any goods or services or both without issuing any invoice with the intention of evading tax amount exceeding five hundred lakh rupees(S.132(1)(a)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Cognizable and Non-bailable
S.132(5) |
| 2. | Invoice or bill without supply:
Issues any invoice or bill without supplying goods or services or both leading to wrongful availment or utilisation of input tax credit or refund of tax amount exceeding the amount of five hundred lakh rupees(S.132(1)(b)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Cognizable and Non-bailable
S.132(5) |
| 3. | Input tax credit from an invoice aforementioned:
Availing input tax credit amount exceeding five hundred lakh rupees using an invoice or bill for which the goods or services or both has not been supplied. (S.132(1)(c)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Cognizable and Non-bailable
S.132(5) |
| 4. | Failing to pay collected tax:
Collects any amount exceeding five hundred lakh rupees as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment is due. (S.132(1)(d)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Cognizable and Non-bailable
S.132(5) |
| 5. | Evasion/fraudulent availment/fraudulent refund:
Evasion of tax, fraudulently availing input tax credit or fraudulently obtains refund for an amount exceeding five hundred lakh rupees and such offence is not covered under s.132(1)(a)-(d) (S.132(1)(e)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Non-cognizable and bailable
S.132(4) |
| 6. | Goods liable to be Confiscated:
Acquiring possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under CGST Act and uses it for tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding five hundred lakh rupees. (S.132(1)(h)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Non-cognizable and bailable
S.132(4) |
| 7. | Contravened Services:
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 CGST Act and uses it for tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding five hundred lakh rupees (S.132(1)(i)(ii)) |
Imprisonment for a term which may extend to 5 years + fine | Non-cognizable and bailable
S.132(4) |
| 8. | Failed Information Supply/False Information:
Fails to supply any information which he is required to supply under CGST Act or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information which makes it a case of tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding five hundred lakh rupees (S.132(1)(k)(i)) |
Imprisonment for a term which may extend to 5 years + fine | Non-cognizable and bailable
S.132(4) |
| 9. | Attempt/abet to commit: Anyone who attempts to commit or abets to commit the aforementioned offences for purposes of tax evasion wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding five hundred lakh rupees. (S.132(1)(l)(i)) | Imprisonment for a term which may extend to 5 years + fine | Non-cognizable and bailable
S.132(4) |
S.132(1)(ii):Amount exceeding two hundred lakh rupees but less than five hundred lakh rupees
| SR. NO. | OFFENCE | PUNISHMENT | COGNIZABLE AND NON-BAILABLE
OR NON-COGNIZABLE AND BAILABLE |
| 1. | Supply without invoice:
Supplies any goods or services or both without issuing any invoice with the intention of evading tax amount exceeding two hundred lakh rupees but less than five hundred lakh rupees (S.132(1)(a)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 2. | Invoice or bill without supply:
Issues any invoice or bill without supplying goods or services or both leading to wrongful availment or utilisation of input tax credit or refund of tax amount exceeding two hundred lakh rupees but less than five hundred lakh rupees (S.132(1)(b)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 3. | Input tax credit from an invoice aforementioned:
Availing input tax credit of an amount exceeding two hundred lakh rupees but less than five hundred lakh rupees, using an invoice or bill for which the goods or services or both has not been supplied. (S.132(1)(c)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 4. | Failing to pay collected tax:
Collects any amount exceeding two hundred lakh rupees but less than five hundred lakh rupees as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment is due. (S.132(1)(d)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 5. | Evasion/fraudulent availment/fraudulent refund:
Evasion of tax, fraudulently availing input tax credit or fraudulently obtains refund for an amount exceeding two hundred lakh rupees but less than five hundred lakh rupees and such offence is not covered under s.132(1)(a)-(d) (S.132(1)(e)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 6. | Goods liable to be Confiscated:
Acquiring possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under CGST Act and uses it for tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding two hundred lakh rupees but less than five hundred lakh rupees. (S.132(1)(h)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 7. | Contravened Services:
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 CGST Act and uses it for tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding two hundred lakh rupees but less than five hundred lakh rupees. (S.132(1)(i)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 8. | Failed Information Supply/False Information:
Fails to supply any information which he is required to supply under CGST Act or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information which makes it a case of tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of an amount exceeding two hundred lakh rupees but less than five hundred lakh rupees. (S.132(1)(k)(ii)) |
Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
| 9. | Attempt/abet to commit: Anyone who attempts to commit or abets to commit the aforementioned offences for purposes of tax evasion wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount exceeding two hundred lakh rupees but less than five hundred lakh rupees. (S.132(1)(l)(ii)) | Imprisonment for a term which may extend to 3 years + fine | Non-cognizable and bailable
S.132(4) |
S.132(1)(iii):Amount ranging from one hundred lakh rupees to two hundred lakh rupees
| SR. NO. | OFFENCE | PUNISHMENT | COGNIZABLE AND NON-BAILABLE
OR NON-COGNIZABLE AND BAILABLE |
| 1. | Supply without invoice:
Supplies any goods or services or both without issuing any invoice with the intention of evading tax amount ranging from one hundred lakh rupees to two hundred lakh rupees(S.132(1)(a)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 2. | Invoice or bill without supply:
Issues any invoice or bill without supplying goods or services or both leading to wrongful availment or utilisation of input tax credit or refund of tax amount ranging from one hundred lakh rupees to two hundred lakh rupees(S.132(1)(b)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 3. | Input tax credit from an invoice aforementioned:
Availing input tax credit amount ranging from one hundred lakh rupees to two hundred lakh rupees using an invoice or bill for which the goods or services or both has not been supplied. (S.132(1)(c)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 4. | Failing to pay collected tax:
Collects any amount ranging from one hundred lakh rupees to two hundred lakh rupees as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment is due. (S.132(1)(d)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 5. | Evasion/fraudulent availment/fraudulent refund:
Evasion of tax, fraudulently availing input tax credit or fraudulently obtains refund for an amount ranging from one hundred lakh rupees to two hundred lakh rupees and such offence is not covered under s.132(1)(a)-(d) (S.132(1)(e)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 6. | Goods liable to be Confiscated:
Acquiring possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under CGST Act and uses it for tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount ranging from one hundred lakh rupees to two hundred lakh rupees. (S.132(1)(h)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 7. | Contravened Services:
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 CGST Act and uses it for tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount ranging from one hundred lakh rupees to two hundred lakh rupees (S.132(1)(i)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 8. | Failed Information Supply/False Information:
Fails to supply any information which he is required to supply under CGST Act or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information which makes it a case of tax evasion/wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount ranging from one hundred lakh rupees to two hundred lakh rupees. (S.132(1)(k)(iii)) |
Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
| 9. | Attempt/abet to commit: Anyone who attempts to commit or abets to commit the aforementioned offences for purposes of tax evasion wrongfully availing or utilising input tax credit/ wrongfully taking refund of amount ranging from one hundred lakh rupees to two hundred lakh rupees(S.132(1)(l)(iii)) | Imprisonment for a term which may extend to 1 year + fine | Non-cognizable and bailable
S.132(4) |
S.132(1)(iv): Commission or abets commission of three particular offences
| SR. NO. | OFFENCE | PUNISHMENT | COGNIZABLE AND NON-BAILABLE
OR NON-COGNIZABLE AND BAILABLE |
| 1. | False/fake documents:
Anyone who 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 under CGST Act |
Imprisonment for a term which may extend to 6 months or/and with fine | Non-cognizable and bailable
S.132(4) |
| 2. | Obstructing/preventing officer:
Anyone who obstructs or prevents any officer in the discharge of his duties under CGST Act |
Imprisonment for a term which may extend to 6 months or/and with fine | Non-cognizable and bailable
S.132(4) |
| 3. | Tamper/destroy evidence: Anyone who tampers or destroys material evidence or documents | Imprisonment for a term which may extend to 6 months or/and with fine | Non-cognizable and bailable
S.132(4) |
