General Penalty Provisions

• Penalties imposed under Section 122 to 138 of the CGST Act
  
• Applicable for contraventions like non-registration, evasion, incorrect returns
  
• Penalty can be a fixed amount or a percentage of tax involved
  
• Both monetary and prosecution penalties are prescribed
  
• Imposed in addition to interest and tax payable
  

Common Offences and Penalties

• Non-registration despite being liable: ₹10,000 or tax amount, whichever is higher
  
• Wrong invoice or no invoice: ₹10,000 or full tax amount
  
• Incorrect ITC claim: 100% of ITC wrongly availed
  
• Failure to file returns: ₹100 per day under CGST + ₹100 per day under SGST
  
• Non-payment of tax collected: up to 100% of the amount not paid
  

Late Fees and Interest

• Late filing of GSTR-3B or GSTR-1 attracts ₹50 per day (₹20 if NIL return)
  
• Interest at 18% per annum on delayed tax payment
  
• Interest at 24% per annum for wrong ITC claim and usage
  
• Interest calculated from due date until payment date
  
• Late fees have statutory caps based on turnover and period
  

Fraudulent Offences

• Supplying goods/services without invoice or with fake invoice
  
• Availing ITC without actual receipt of goods/services
  
• Tax evasion through suppression of facts or manipulation
  
• Fraudulent offences can lead to arrest and prosecution
  
• Imprisonment up to 5 years for repeated or serious offences
  

Voluntary Disclosure and Relief

• Taxpayers may voluntarily disclose and pay tax with reduced penalties
  
• Penalties can be waived during departmental adjudication under Section 73
  
• Proper documentation and cooperation during audit reduce penalty risk
  
• Adherence to due dates and accurate filing helps avoid penal action
  
• Appeal and rectification provisions available for penalty orders