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Chapter XIX: Offences
and penalties
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122
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122(1): Penalty of higher of Rs.10,000 or amount which
is due under below offences shall be paid by a person who:
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Does
not issue or issues incorrect or false invoice
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Issues any invoice or
document by using the
registration no. of another person
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Issues invoice without supply & avails
ITC on such
invoice
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Suppresses
turnover or fraudulently obtains refund of tax
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Collects
any tax which is not paid to
the government within 3 months from due date of payment
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Deducts
or collects, lesser amount than required u/s
51(1) or 52(1) or fails to pay u/s 51(2) or 52(3)
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Takes or distributes
ITC in contravention of section 20
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Falsifies or fails to retain financial records, accounts or
documents
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Fails
to furnish or furnishes false information or return or documents
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Fails
to obtain registration even though liable to do
so
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Transports any taxable goods without the cover of documents
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Supplies, transports
or stores goods which are liable
to confiscation
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Tampers or destroys any material evidence or document or goods that
have been detained, seized, or attached
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Obstructs or prevents any officer in discharge of his duties
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122(1A): Any person retaining benefit of any transaction as mentioned
below at whose instance such transaction is conducted shall be liable to the
penalty equal to Tax
evaded, ITC availed or passed on.
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Transaction without
issuing invoice or by issuing incorrect or false invoice
► Avail credit for
invoice or bill issued without supply of goods or services
► Utilizes ITC without
actual receipt of goods or services
► Takes or distributes ITC in contravention of
section 20
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122(1B): Any e-commerce
operator who is
liable to collect tax at source u/s 52:
► Allows a supply through it by an unregistered person (other
than a person exempted from registration to make such supply)
► Allows inter-state supply through it by a person who is not
eligible to make such supply
► Fails to furnish correct details in the Statement of Outward
supplies u/s 52(4) through it by a person exempt from obtaining registration
Shall pay a penalty of higher of Rs.10,000/- or amount equal to the tax involved had such
supply been made by a registered person other than person paying tax u/s 10.
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122(2): Supplier of any supplies on
which any tax has not been
paid or short-paid or wrongly refunded, or ITC has been
wrongly availed or utilized shall be liable to a penalty equal to:
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Involving fraud or willful
misstatement or suppression of facts to evade tax
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Higher of Rs.10,000 or the tax due
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Other
cases
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Higher of Rs.10,000 or 10%
of the tax due
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122(3): Penalty up to Rs.25,000
shall be paid if a person:
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Aids
or abets any of the offences specified 122(1)
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Possesses, transports,
stores, supplies, purchases etc. goods which he knows or believes
are liable to confiscation
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Receives or deals with
supply of services which he knows or believes are in contravention of any provisions
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Fails
to appear before the officer of central tax when
summoned
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Fails
to issue invoice as per provisions or
invoice is not accounted in the books
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Offence
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Penalty (Rs.)
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Maximum (Rs.)
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122A
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Failure to register certain machines used in manufacture of goods as per special procedure
notified
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Rs.1 lakh
per machine
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–
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122B
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Failure to
comply with track and trace mechanism referred u/s 148A
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Higher of
Rs.1 lakh or 10% of tax
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–
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123
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Not filing return u/s 150
within specified period
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100 per
day
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5000
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124
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Failure to furnish any information or return u/s 151 or furnishing of false information
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Up to
10000 and 100 per day
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25000
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125
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Contravention of any provisions of this
Act or any rules for which no penalty is separately provided
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–
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25000
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126
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Penalty is not imposed for minor breaches (tax is less than Rs.5,000) of tax regulations or procedural
requirements & any omission or mistake in documentation which is easily
rectifiable & made without fraudulent intent or gross negligence.
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128
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For late filing of
GSTR-1, 3B, 4, 5, 6 & 7, the late fee payable u/s 47 has been
reduced to Rs. 25/- per day.
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For GSTR-1, 3B, 4
& 5, if the Tax
liability is Nil, then fee is Rs. 10/- per day.
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For GSTR-9, 9C, from
FY 22-23, if aggregate Turnover is up to Rs.5 crore, then fee is Rs.25 per
day. If aggregate Turnover is above Rs.5 crore but
upto Rs. 20 crore, fee is Rs.50 per day.
Note: SGST
Act also prescribes the same amount of late fee. Therefore, total late fee
payable will be twice of the above said amounts.
Notification No. 73/2017, 4/2018, 5/2018, 7/2018, 76/2018
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The late fee payable
for late filing GSTR-1,3B,4, 7, 9 & 9C is restricted to below mentioned
limit (applicable from June-2021/quarter Jun-Jul-2021, FY 21-22 for GSTR-4):
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Return
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Condition
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Max. limit (Rs.)
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Notification
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GSTR-1 & 3B
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GSTR 1 NIL Return
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GSTR 3B – if Tax Payable is ‘NIL’
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250
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19/2021,
20/2021
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Other than above cases:
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If Turnover is up to Rs.1.5 Crore
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1000
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If Turnover is > Rs.1.5 crore, up to Rs.
5 Crore
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2500
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GSTR-4
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Nil Return
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250
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21/2021
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Other than NIL Return
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1000
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GSTR -7
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–
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1000
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23/2024
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GSTR-9 / 9C
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Turnover is up to Rs.
20 crore (from FY 22-23)
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0.02% of
Turnover
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 07/2023
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The late
fee is waived in following cases:
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GSTR-9, 9C: Registered
persons who failed to file GSTR-9C along with GSTR-9 for FY 2017-18 to FY
2022-23 and subsequently file the same on or before 31-Mar-2025, then late
fee u/s Sec.47 in excess of late fee payable till the date of filing form
GSTR-9 for that FY is waived off. However, late fee already paid will not be
refunded. Notification No. 08/2025
read with Circular No. 246/03/2025-GST
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GSTR-7 is not filed
for any month within the due date, where total central TDS for that month is
NIL. Notification No. 23/2024
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GSTR-9 for FY 2017-18 to FY 2021-22 is
filed between 1.4.2023 to 31.8.2023, then late fee in excess of Rs.10,000/-
is waived off. Notification No. 07/2023 & 25/2023
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GSTR-10 is not filed
within due date, but filed between 1.4.2023 to 31.8.2023, then late fee in
excess of Rs.500 is waived off. Notification No. 08/2023 &
26/2023
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GSTR-4 for the
quarters July, 2017 to March, 2019 or for FY’s 2019-20 to 2021-22 is not
filed within the due date, but filed between 01-April-23 to 31-Aug-23, then
late fee is fully waived for Nil Returns & late fee in excess of Rs. 250
is waived for other returns. Notification No 02/2023 & 22/2023
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GSTR-4 for FY 2021-22
filed on or before  28-Jul-2022 Notification No.12/2022
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GSTR-3B for the
months/quarter of July, 2017 to April, 2021 is not filed within due dates but
filed between 01-Jun-2021 to 30-Nov-2021, then late fee in excess of Rs.250
is waived off in case of Nil return & late fee in excess of Rs. 500 is
waived off in case of other than Nil returns. Notification No. 19/2021
& 33/2021
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GSTR-3B for the months
March, April & May 2021 / Quarter Jan-Mar-2021 if filed before the date
mentioned in Notification No. 09/2021 & 19/2021.
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GSTR-4 for FY 2019-20
is filed between 01-Nov-2020 to 31-Dec-2020 if principal place of business is
in Ladakh. Notification No. 93/2020
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GSTR-10 is not filed
within due date, but filed between 22-Sep-20 to 31-Dec-20, then late fee in
excess of Rs. 250 is waived. Notification No. 68/2020
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GSTR-4 nil return for
the quarters from July, 2017 to March, 2019 is filed between 22-Sep-20 to
31-Oct-20, then late fee in excess of Rs. 250 is waived. Notification No 67/2020, Corrigendum
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GSTR-1 for the months
from March to June 2020 / Quarter ending in March-2020 & June-2020, is
filed on or before the date mentioned in Notification No.53/2020.
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GSTR-3B for the month
of February to July-2020 is filed before the date mentioned in Notification
No.52/2020. If the return could not be filed within mentioned date, but
filed on or before 30-Sep-2020, the late fee is fully waived off in case of
Nil return & late fee in excess of Rs. 250 is waived off in case of other
than Nil returns. Notification No.57/2020
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GSTR-3B for the month
of July, 2017 to January, 2020 is filed between 01-Jul-2020 to 30-Sep-2020,
then late fee is fully waived off in case of Nil return & late fee in
excess of Rs. 250 is waived off in case of other than Nil returns. Notification No.52/2020
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GSTR 1 for the
months/quarters from July,2017 to November,2019 is not filed by the due date,
but furnishes the said returns between the 19-Dec-2019 to 17-Jan-2020 Notification No. 74/2019 , 04/2020
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If taxpayers of Jammu
and Kashmir files the return for the month July & August 2019 in GSTR-1
by 11-Oct-2019, GSTR-7 by 11-Oct-2019 & GSTR-3B by 20-Oct-2019Â Notification No.41/2019 ,
48/2019
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If GSTR-6 return for
the month July-2019 is filed on or before 20-Sep-2019 by taxpayers of Jammu
and Kashmir Notification No.41/2019
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If GSTR-6 and GSTR-1
monthly return for the month July-2019 is filed on or before 20-Sep-2019 by
taxpayers of notified districts of Bihar, Gujarat, Karnataka, Kerala,
Maharashtra, Odisha, Uttarakhand Notification No.41/2019
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GSTR-1/ GSTR-3B/ GSTR-4 for the
months/quarters from July, 2017 to September, 2018 is not filed by the due
date, but furnishes the said returns between the 22-Dec-18 to 31-Mar-19.[Notification No. 75/2018] & [Notification No. 76/2018] &
[Notification No. 77/2018]
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GSTR-3B for the month
October-2017 if submitted, but not filed.
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GSTR-6 filed in
between 1-Jan-2018 to 23-Jan-2018 Notification No. 41/2018
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129
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If any
person transports or stores goods
in transit in contravention of the provisions of
this Act or rules, such goods & conveyance used for transport &
documents relating to such goods & conveyance shall be liable to
detention or seizure & shall be released, on payment of penalty given
below or Rs.25,000, whichever is less, and providing security equal to
penalty & tax payable.
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Person who pays such tax & penalty
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Type of goods
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% of Penalty
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Owner
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Taxable
goods
Exempted
goods
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100% of
tax payable
2% of
value of goods
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Transporter
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Taxable
goods
Exempted
goods
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50% of tax
payable
5% of
value of goods
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If the
transporter or owner fails to pay such amount within 14 days of such detention
or seizure, further proceedings shall be initiated u/s 130.
Note: Total Penalty is the sum of the penalties leviable under other
GST Acts.
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130
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If a
person commits any of the following offences, then such goods or conveyances
is liable to confiscation & penalty u/s 122 shall be paid:
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Supplies or receives
any goods in contravention of provisions
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Does
not account for goods on which he is liable to
pay tax
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Supplies any goods liable to tax without having applied for registration
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Contravenes
any provisions with intent to evade tax
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Uses any conveyance
for transportation of goods in
contravention of provisions (Unless the
owner of the conveyance proves that it was so used without his knowledge)
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132
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Person commits or attempts to commit or abets any of the following offences:
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Does
not issue invoice
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Issues
invoice without supply & avails ITC on such
invoice
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Collects any tax which is not
paid to the government within 3 months from due date of payment
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Evades tax or fraudulently avails refund
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falsifies financial
records, produces fake accounts/documents or furnishes false information with
an intention to evade tax
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Possesses, transports,
stores, supplies , purchases etc. goods which he knows or believes
are liable to confiscation
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Receives or deals with
supply of services which he knows or believes are in contravention of any provisions
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Attempts to commit or
abets the commission of any of the offences mentioned above
shall be
punishable as follows:
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Tax evaded or ITC wrongly availed or refund wrongly taken
exceeds
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Fine &/or imprisonment up to
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500 lakh
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5 years
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200 lakh
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3 years
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100 lakh (other offence, upto 30-Sep-23)
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1 year
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From
01-Oct-23, person who issues
invoice without supply & wrongfully avails
ITC/refund/evades tax shall be punishable with fine &/or imprisonment
upto 1 year where such amount exceeds Rs.100 lakh but doesn’t exceed Rs.200
lakh.
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Person who
commits or abets commission of following offences shall be punishable with
imprisonment up to 6
months or with fine or both:
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Falsifies financial records, accounts or documents or furnishes false
information with an intention to avoid tax
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137
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Persons deemed to be guilty of offence:
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Persons in charge of
& responsible for the conduct of a body corporate, at the time of
offence
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Any director, manager
or officer of
a company if
offence has been committed with the consent or connivance of, or due to
negligence of such person
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