Section 122 of the CGST Act: Penalties & Offences

• Supplying goods/services without issuing an invoice or issuing false invoices.
• Issuing invoices without any actual supply of goods/services.
• Collecting tax but failing to remit it to the government within three months.
• Failing to deduct or remit tax under Section 51.
• Failing to collect or remit tax under Section 52.
• Claiming input tax credit without receiving goods/services.
• Fraudulently obtaining tax refunds.
• Misusing or distributing input tax credit.
• Providing false financial records or documents to evade tax.
• Failing to register under GST despite being liable.
• Providing false registration details.
• Obstructing tax officers in their duties.
• Transporting taxable goods without proper documentation.
• Suppressing turnover to evade tax.
• Failing to maintain required books and documents.
• Providing false information or failing to furnish required documents.
• Supplying or storing goods liable for confiscation.
• Issuing invoices using another's registration number.
• Tampering with or destroying evidence or documents.
• Tampering with detained, seized, or attached goods.

Higher of the below two amounts-

1. ₹10,000 

or 

Either of the below amounts as may be applicable-

- A sum equivalent to the sum of tax evaded,

- The tax not deducted under CGST Section 51 or short-deducted or deducted but not paid to the Government

- The tax not collected under section 52 or short collected or collected but not paid to the Government

- The input tax credit availed of or passed on or distributed irregularly

- The refund claimed fraudulently

Section 122(1A) of CGST Act

Retaining benefits of transaction as per Section 122 (1), clause (i), (ii), (vii) or clause (ix)

Clause (i) - Supplies without issuing any invoice or issuing incorrect or false invoice

Clause (ii) - Do not supplies goods or services or both despite issuing invoice or bill

Clause (vii) - Takes benefit of ITC without actual receipt of goods or services or both either fully or partially

Clause (ix) - takes benefit of or distributes ITC in contravention of section 20

Section 122(1B) of CGST Act

An e-commerce operator u/s 52 of the CGST Act, through its platform:

• Allowing an unregistered person to trade who is also not exempted for registration by notification as per the GST Act 
• Allowing inter-state supply of goods by persons not eligible for such activity 
• Failing to furnish the correct documentation for such trades 

₹10,000 or a sum equivalent to the tax liability if supplies were made though registered persons, whichever is higher

Section 122(2) of CGST Act

Any registered person supply goods and services without payment of tax, short payment or erroneously refunded or availed ITC wrongly for reasons: 

• Other than fraud or wrongdoing 
• Related to fraud, wilful misstatement, suppression of facts 

Section 122(3) of CGST Act

A registered person who either: 

• Aiding or abetting offences as per 122 (1), clause (i) to (xxi)
• Knowingly acquiring, transporting, removing, depositing, keeping, concealing, or supplying goods or services that are liable to confiscation 
• Knowingly receiving or supplying goods that are in contravention of any provisions of the GST Act
• Failing to appear before the officer when summoned to produce evidence or document related above-mentioned unlawful activities 
• Failing to issue an invoice in accordance with the GST Act