TMI BlogOffences, Penalties, Prosecution and CompoundingX X X X Extracts X X X X X X X X Extracts X X X X ..... obtaining any refund; 9) Availing/distributing input tax 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 evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that shall be higher of the following amounts: The amount of tax evaded, fraudulently obtained as refund, availed as credit, or not deducted or collected or short deducted 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he title to the goods to the Government. Q 10. Under which circumstances can goods be confiscated under CGST/SGST Act? Ans. Under Section 130 of the CGST Act , goods shall be liable to confiscation if any person: supplies or receives any goods in 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 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing with supply of services in contravention of the Act; k) tampers with or destroys any material evidence or documents l) Failing to supply any information required of him under the Act/Rules or supplying false information; m) Attempting to commit or abetting the commission of any of the offences at (a) to (l) above. Q 16. What is the punishment prescribed 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her before or after the institution of prosecution: Offences numbered 1 to 6 of the 12 major offences (outlined in Q. 16 above), if the person charged with the offence had compounded earlier in respect of any of the said offences; Aiding/abetting offences numbered 1 to 6 of the 12 major offences, if the person charged with the offence had compounded earlier in respect of any of the said offences; Any offence (other than the above offences) under any SGST Act / IGST Act in respect of a supply with value exceeding ₹ 1 crore, if the person charged with the offence had compounded earlier in respect of any of the said offences; Any offence which is also an offence under NDPSA or FEMA or any other Act other than CGST / SGST ; Compounding is to be permitted only after payment of tax, interest and penalty and compounding shall not affect any proceeding already instituted under any other law. Q 24. Are there any monetary limits prescribed for compounding of offence? Ans. Yes. The lower limit for compounding amount is to be the greater of the following amounts: - 50% of tax involved, or ₹ 10,000. The upper limit for compounding ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
