Goods and Services Tax, commonly known as GST, is a tax regime that has simplified the taxation system in India. It has replaced many earlier taxes like excise duty, VAT, and service tax. GST is levied at every stage of the supply chain, right from the manufacturer to the final consumer.
However, the implementation of GST has also raised several legal and penal issues. In this article, we will discuss some of the penal aspects related with GST.
Offences related to GST can be classified into two categories:
1. Offences related to evasion of tax.
2. Offences related to non-compliance of GST provisions.
Evasion of tax is a serious offence under GST. The following are some of the offences that come under this category:
1. Supplying goods or services without issuing an invoice or issuing a false invoice.
2. Issuing an invoice without making the supply.
3. Availing input tax credit fraudulently.
4. Furnishing false information while registering under GST.
These offences are punishable with imprisonment for a term that may extend to 5 years and with a fine.
Non-compliance of GST provisions is another serious offence. The following are some of the offences that come under this category:
1. Failure to register under GST.
2. Failure to maintain proper records.
4. Failure to file GST returns.
5. Furnishing false information in GST returns.
6. Obstructing or preventing any officer in the discharge of his duties.
These offences are punishable with a fine that may extend to Rs. 25,000.
Penalties are imposed for non-compliance of GST provisions. The following are some of the penalties that can be imposed under GST:
1. A penalty of 10% of the tax due, subject to a minimum of Rs. 10,000, can be imposed if the taxpayer fails to file GST returns.
2. A penalty of Rs. 100 per day can be imposed for each day of delay in filing GST returns, subject to a maximum of Rs. 5,000.
3. A penalty of Rs. 10,000 or 10% of the tax due, whichever is higher, can be imposed for furnishing false information in GST returns.
4. A penalty of Rs. 25,000 can be imposed for obstructing or preventing any officer in the discharge of his duties.
GST has simplified the taxation system in India, but it has also brought along several legal and penal issues. Offences related to evasion of tax and non-compliance of GST provisions are taken seriously and can result in severe penalties. It is important for businesses to comply with GST provisions to avoid such penalties.
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