Category: Offences and Penalties under GST

Such person shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine.

(ICAI FAQ PUBLICATIONS 06-09-2017 Punishment for Certain Offences: FAQ NO. 26)

Offences	Punishment
Tax evaded / Wrong availment or utilisation of input tax credit / Amount of Refund wrongly taken exceeding ` 500 lakh	Five years imprisonment with Fine
Tax evaded / Wrong availment or utilisation of input tax credit / Amount of Refund wrongly taken exceeding ` 250 lakh but does not exceed ` 500 lakh	Three years imprisonment with Fine
Tax evaded / Wrong availment or utilisation of input tax credit / Amount of Refund wrongly taken exceeding ` 250 lakh but does not exceed `100 lakh.	One year imprisonment with Fine
Commits or abets in · Falsification or substitution of financial records or producing fake accounts, documents or furnishes any false information with an intention to evade payment of tax; · Obstruction or prevention any officer in the discharge of his duties · Tampering with or destroying any material evidence or documents;	Six months imprisonment or Fine or both

(ICAI FAQ PUBLICATIONS 06-09-2017 Punishment for Certain Offences: FAQ NO. 25)

Following are the offences which attract prosecution:
(a) Supply of goods or services or both without the cover of invoice with an intent to evade tax;
(b) If any person issues any invoice or bill without actual supply of goods or services or both leading to wrongful input tax credit or refund of tax;
(c) Any person who avails input tax credit using invoice referred in point (b) above;
(d) Collection of taxes without payment to the government for a period beyond 3 months of due date;
(e) Evasion of tax, availment of credit or obtaining refund with an intent of fraud where such offence is not covered in clause (a) to (d) above.
(f) Falsifying financial records or production of false records/ accounts/ documents/ information with an intent to evade tax;
(g) Obstructs or prevents any officer from doing his duties under the act;
(h) Acquires or transports or in any manner or deals with any goods which he knows or has reasons to believe are liable for confiscation under this Act or rules made there under;
(i) Receives or in any way, deals with any supply of services which he knows or has reason to believe are in contravention of any provisions of this law;
(j) Tampers with or destroys any material evidence or documents;
(k) Fails to supply any information which he is required to supply under this law or supply false information;
(l) Attempts or abets the commission of any of the offences mention above

(ICAI FAQ PUBLICATIONS 06-09-2017 Punishment for Certain Offences: FAQ NO. 24)

In terms of section 131 confiscation made or penalty imposed under the provisions of this Act or the rules made there under shall not prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law.

(ICAI FAQ PUBLICATIONS 06-09-2017 Confiscation of goods and/or conveyances and levy of penalty: FAQ NO. 23)

 The title of goods and/or conveyance which are confiscated under CGST Act, shall vest in the Government.
 The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession.
 The proper officer may, after satisfying himself that the confiscated goods and conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of
confiscation, dispose such goods and/or conveyances and deposit the sale
proceeds thereof with the Government.

(ICAI FAQ PUBLICATIONS 06-09-2017 Confiscation of goods and/or conveyances and levy of penalty: FAQ NO. 22)

Under following circumstances, fine could be paid in lieu of confiscation of goods or conveyance:
 the officer adjudging the matter shall give to the owner of the goods an option to pay a fine in lieu of confiscation. The fine shall not exceed the market value of the goods confiscated, less the tax chargeable thereon
 where owner of goods is not known, such option could be given to the person from whose possession or custody such goods have been seized;             The aggregate of such fine and penalty leviable shall not be less than the amount of penalty of 100% of the tax (if paid by owner) or 50% of the value of goods less tax (where it is paid by person other than owner in terms of Section 129(1))
 In case where conveyance is confiscated, and such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon.
 Where any fine in lieu of confiscation of goods or conveyance is imposed, the person (owner or other person) shall be liable to pay any tax and charges
payable in respect of such goods in addition to the fine

(ICAI FAQ PUBLICATIONS 06-09-2017 Confiscation of goods and/or conveyances and levy of penalty: FAQ NO. 21)

Under following circumstances, goods / conveyance could be confiscated by the proper officer under GST provisions:
(i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made there under with intent to evade payment of tax; or
(ii) where a person does not account for any goods on which he is liable to pay tax under this Act; or
(iv) where a person supplies any goods which are liable to tax under this Act without having applied for registration; or (v) where a person contravenes any of the provisions of this Act or rules made there under with intent to evade payment of tax; or
(vi) where a person uses any conveyance as a means of transport for carriage of taxable goods in contravention of the provisions of the Act or rules made
there under unless the owner of the conveyance proves that it was so used
without the knowledge or connivance of the owner himself his agent, if any, and the person in charge of the conveyance.

(ICAI FAQ PUBLICATIONS 06-09-2017 Confiscation of goods and/or conveyances and levy of penalty: FAQ NO. 20)

Where the owner or the person transporting the goods does not pay the amounts prescribed (tax plus penalty) and get the goods released within 7 days then in such cases then the further proceedings shall be initiated in accordance with the provisions of section 130.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 19)

Where the detained goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the proper officer may reduce the said time period to period less than 7 days.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 18)

Tax and penalty as prescribed in Section 129(1) shall be paid within 7 days of the date of detention to get the goods released.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 17)