Find out the detailed explanation of the provisions related to Offences and Penalties under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
OBJECTIVE
To check if the levy and collection of GST is in order, there also needs to be monitoring of offences committed by any person in contravention to provisions of this Act. The GST Law imposes penalties and prosecution for offences depending on the intention of the person committing the offence. In this Webinar we will be learning about the provisions of the GST Act regarding the major offences, penalty leviable, prosecutions for sepcified offenses and general disciplines relating to penalty.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall be learning the procedural aspects of refund under GST law.
Concept & Nature of supply under GST LawArpit Verma
Chapter III of Central Goods and Services Tax Act, 2017 & Integrated Goods and Services Tax Act, 2017 contains the provision of levy and collection of GST.
The expression “Supply” is defined under section 7(1) of Central Goods and Services Tax Act, 2017.
There is no such proposition in the existing laws as the concept of supply is unique to our tax system and considered as a ‘taxable event’ for the first time in indirect tax regime.
Read My Full Article on Concept & Nature of Supply Under GST.
OBJECTIVE
To check if the levy and collection of GST is in order, there also needs to be monitoring of offences committed by any person in contravention to provisions of this Act. The GST Law imposes penalties and prosecution for offences depending on the intention of the person committing the offence. In this Webinar we will be learning about the provisions of the GST Act regarding the major offences, penalty leviable, prosecutions for sepcified offenses and general disciplines relating to penalty.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall be learning the procedural aspects of refund under GST law.
Concept & Nature of supply under GST LawArpit Verma
Chapter III of Central Goods and Services Tax Act, 2017 & Integrated Goods and Services Tax Act, 2017 contains the provision of levy and collection of GST.
The expression “Supply” is defined under section 7(1) of Central Goods and Services Tax Act, 2017.
There is no such proposition in the existing laws as the concept of supply is unique to our tax system and considered as a ‘taxable event’ for the first time in indirect tax regime.
Read My Full Article on Concept & Nature of Supply Under GST.
Adjudication and Appeals provisions under GST. Includes provisions as per Chapter XVIII of CGST Act, 2017 together with Chapter XIII of CGST Rules, 2017.
Find out the detailed explanation of the provisions relating to Input Tax Credit under the dual GST Law from the presentation . Give it a read and we would love to know your feedback!
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
One of the fundamental features of GST is the seamless flow of input credit across the chain and across the country for supply of Goods or Services. Know more about ITC under GST at https://cleartax.in/s/gst-input-tax-credit/
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OBJECTIVE
Customs duty is an indirect tax, which is a tax on the goods and not a tax on the person having or owning the goods.In this webinar, we shall know when an assessment can be made and when shall an appeal be made before a commissioner, High Court and Supreme Court.
Goods and Services Tax - Input Tax Credit Eligibility
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This presentation covers the provisions related to assessments, audit, penalties, prosectuion and show cause notice provisions under GST laws updated upto 31-05-2017
Adjudication and Appeals provisions under GST. Includes provisions as per Chapter XVIII of CGST Act, 2017 together with Chapter XIII of CGST Rules, 2017.
Find out the detailed explanation of the provisions relating to Input Tax Credit under the dual GST Law from the presentation . Give it a read and we would love to know your feedback!
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
One of the fundamental features of GST is the seamless flow of input credit across the chain and across the country for supply of Goods or Services. Know more about ITC under GST at https://cleartax.in/s/gst-input-tax-credit/
Show Cause Notices, Adjudication & Introduction to Appeals under GSTGST Law India
This presentation gives a detailed information on show cause notices, reply to SCN, identification of deficiencies in SCN, the scope of writ, the procedure for adjudication under GST and lastly how to file appeal - drafting, its effect, and remedy.
OBJECTIVE
Customs duty is an indirect tax, which is a tax on the goods and not a tax on the person having or owning the goods.In this webinar, we shall know when an assessment can be made and when shall an appeal be made before a commissioner, High Court and Supreme Court.
Goods and Services Tax - Input Tax Credit Eligibility
Basic Provisions. How can a taxpayer claim ITC what are the conditions and restrictions for claiming ITC under GST.
Assessments Audit Penalties and Prosecution under GST LawAmit Mundhra FCA
This presentation covers the provisions related to assessments, audit, penalties, prosectuion and show cause notice provisions under GST laws updated upto 31-05-2017
Find out the detailed explanation of the provisions related to Filing of returns under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
This article comprises of basic compliances which every assessee shall be liable to comply with and in case, it defaults in complying with the same, he shall be subject to penalty and interest.
CA Ashish Garg
Insider Trading-Analysis of Provisions, Offences and Penalties: A presentation at Indian Institute of Corporate Affairs by Mr. Manoj Kumar, Assistant Vice President, Corporate Professionals.
Key Highlights: Who is and Insider?, Insider Regulation 2(e), explanation to connected person, regulation 2(h), What Is Price Sensitive Information, OFFICER OF A COMPANY – REGULATION 2(g), Procedure for Investigation…
The debate over the implementation of Goods and Services Tax (GST) has been tiresomely long.
GST is a critical reform in spurring growth in the Indian economy.
When it is introduced, GST is expected to make the tax system simpler and will also help in increased compliance, boost tax revenues, reduce the tax outflow in the hands of the consumers and make exports competitive. The new government will hopefully set forth a roadmap for the implementation of GST soon.
Today’s lesson on GST attempts to simplify this concept for you.
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the Producer’s point and Service provider’s point up to the retailer level.
The Goods and Services Tax is being billed as the significant next step in indirect tax reform since VAT was successfully introduced all over India.
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Consequences of Non Compliance Under GSTMitesh Katira
This document examines some of the monetary penalties,late fees & prosecution under the Central Goods & Service Tax Act,2017
The effective implementation of any tax law requires strict action against tax offenders. It is important for businesses to understand various compliances and implications for non-comply with various rules under GST. To encourage compliance with India's new GST tax regime, the government has come up with a three-pronged approach: Interest, Monetary Penalties, and Prosecution.
10. imposition of penalty ICAB, KL, Study Manual
10. imposition of penalty ICAB, KL, Study Manual
10. imposition of penalty ICAB, KL, Study Manual
10. imposition of penalty ICAB, KL, Study Manual
Inspection, Search, Seizure and Arrest under Goods & Services Tax Act.pptxtaxguruedu
In any tax administration the provisions for Inspection, Search, Seizure and Arrest are provided to protect the interest of genuine tax payers (as the tax evaders, by evading the tax, get an unfair advantage over the genuine tax payers) and as a deterrent for tax evasion. These provisions are also required to safeguard Government’s legitimate dues. Thus, these provisions act as a deterrent and by checking evasion provide a level playing field to genuine tax payers.
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The following presentation enumerates the taxing structure for real estate transactions and gst rates along with a comparison of the previous tax structure with the present structure under GST. it also discusses service tax on work contracts, service tax on renting, credit linked subsidy scheme, valuation of taxable supply, input tax credit, exemptions for builders, housing society.
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Greetings from GST Law India!
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Please find attached herewith a brief presentation on the process of migration/ enrollment as well as the paramount considerations during the whole migration activity.
It is noteworthy, that paramount consideration at this juncture must be to determine the nature of registration and optimum locations for registration in terms of present and future business transactions as separate registrations shall be required at each state from where supply of goods/ services are being made.
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Find out the detailed explanation of the basic concept and overview of CGST, SGST, IGST under the dual GST Law for the efficient tax administration from the presentation. Give it a read and we would love to know your feedback!
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Offences and Penalties under GST
1. Dell - Internal Use - Confidential
Offences and Penalties under
GST
By:- Puneet Agrawal
B. Com (H), CA, LLB
Partner
Athena Law Associates
2. Dell - Internal Use - Confidential
CONTENTS
This presentation covers-
Offences and penalties under GST
Prosecution of offences under GST
Compounding of offences under GST
3. Dell - Internal Use - Confidential
OFFENCES AND PENALTIES UNDER
GST
4. Dell - Internal Use - Confidential
Offences and Penalties (Section 66)
• Offences have been prescribed under GST Law on which penalties may be imposed
by departmental authorities in terms of Section 66(1) of the Model GST Law. The
lists consists of 21 offences. The said offences are as follows:-
1) Making a supply without invoice or with false/ incorrect invoice;
2) Issuing an invoice without making supply;
3) Not paying tax collected for a period exceeding three months;
4) Not paying tax collected in contravention of the MGL to the credit of the Govt. for a period
exceeding 3 months from the due date;
5) Non deduction or lower deduction of tax deducted at source or not depositing tax deducted
at source under section 37;
6) Non collection or lower collection of or nonpayment of tax collectible at source under
section 43C;
7) Availing/utilizing input tax credit without actual receipt of goods and/or services;
8) Fraudulently obtaining any refund;
9) Availing/distributing input tax credit by an Input Service Distributor in violation of Section
17 or relevant rules;
5. Dell - Internal Use - Confidential
Contd.
10) Furnishing false information or falsification of financial records or furnishing of fake
accounts/ documents with intent to evade payment of tax;
11) Failure to register despite being liable to be registered;
12) Furnishing false information regarding mandatory fields for registration;
13) Obstructing or preventing any official in discharge of his duty;
14) Transporting goods without prescribed documents;
15) Suppressing turnover leading to tax evasion;
16) Failure to maintain accounts/documents in the manner specified in the Act or failure to retain
accounts/documents for the period specified in the Act;
17) Failure to furnish information/documents required by an officer in terms of the Act/Rules or
furnishing false information/documents during the course of any proceeding;
18) Supplying/transporting/storing any goods which he has reason to believe are liable to
confiscation;
19) Issuing invoice or document using GSTIN of another person;
20) Tampering/destroying any material evidence;
21) Disposing of /tampering with goods detained/ seized/attached under the Act.
6. Dell - Internal Use - Confidential
Offence of aid and abatement
• Further a penalty of rupees twenty five thousand has been
prescribed for any person who:
– aids or abates any of the 21 offences as mentioned in clause 1 of Section 66;
– acquires possession of, or in any way concerns himself in transporting,
removing, depositing, keeping, concealing, supplying, or purchasing or in any
other manner deals with any goods which he knows or has reason to believe are
liable to confiscation under this Act or the rules made thereunder;
– receives or is in any way concerned with the supply of, or in any other manner
deals with any supply of services which he knows or has reason to believe are
in contravention of any provisions of this Act or the rules made thereunder;
– fails to appear before the CGST/SGST officer, when issued with a summon for
appearance to give evidence or produce a document in an enquiry;
– fails to issue invoice in accordance with the provisions of this Act or rules
made thereunder, or fails to account for an invoice in his books of account
7. Dell - Internal Use - Confidential
Athena Comments
• The provisions clearly indicate that non only the dealers but
‘any person’ who is engaged in such contravening activities
shall be liable to penalty.
• The provisions also clarifies that a penalty may be imposed in
case a non-dealer fails to appear on summons issued to him for
recoding of evidences.
• Such provisions of imposition of penalty on persons who are
engaged in offensive activities or aid in in offensive activities
shall certainly help achieving higher compliance.
• The penalty amount however is not substantial to discourage
all.
8. Dell - Internal Use - Confidential
General i.e. Residual Penalty
• Section 67 of GST Model Law.
• Any person
– who contravenes any of the provisions of this Act
– or any rules made thereunder
– for which no penalty is separately provided for in this Act,
– shall be liable to a penalty which may extend to rupees twenty five
thousand
9. Dell - Internal Use - Confidential
General disciplines related to penalty
• Section 68 of The Model GST Law prescribes general disciplines of
imposing penalty:
– No penalty for minor breaches –
• Imposition of substantial penalties for minor breaches of tax regulations or
procedural requirements has been restricted, i.e., a breach where amount of tax
involved is less than Rs. 5,000.
• No penalty in respect of any omission or mistake in documentation which is easily
rectifiable and obviously made without fraudulent intent or gross negligence, i.e.,
errors apparent on record
– Penalty to be commensurate with severity of breach
• penalty imposed shall depend on the facts and circumstances of the case
• Penalty shall be commensurate with the degree and severity of the breach
– No penalty without notice and hearing
• No penalty without giving a notice to show cause and
• reasonable opportunity of being heard
10. Dell - Internal Use - Confidential
Contd.
– Reason to be given for imposing penalty
• The tax authority shall ensure provision of an explanation to the persons upon
whom the penalty is imposed
• nature of breach and the laws, regulations or procedural requirements to be
informed
• applicable law, regulation or procedure under which the amount or range of penalty
for the breach has been prescribed
– Lower penalty if breach voluntarily disclosed
• On voluntary disclosure to tax authority the circumstances of a breach of the tax
law, regulation or procedural requirement prior to the discovery of the breach by the
tax authority,
• the tax authority may consider this fact as a potential mitigating factor when
establishing a penalty for that person
– Provisions not applicable when law specifies fixed penalty
11. Dell - Internal Use - Confidential
Athena Comments
• The provisions bring into two intentions of the
legislator:
1. To abide by the principals of natural justice
2. To ensure and aid in ease in voluntary disclosures
3. To ensure and aid in the government’s plea of ease of
doing business in India
12. Dell - Internal Use - Confidential
Penalty for repeatedly making short
payments
• Any registered taxable person who repeatedly makes short payment of tax shall be
liable to a penalty of rupees ten thousand or ten percent of the tax short paid,
whichever is higher – Section 66(2) of GST Model Law.
• A taxable person shall be deemed to have made short payments ‘repeatedly’, if
there were short payments in three returns during any six consecutive tax periods –
explanation to clause 66(2) of GST Model Law, 2016.
13. Dell - Internal Use - Confidential
Detention of goods and conveyances, and
levy of penalty (Section 69)
• Where any person –
– transports any goods or stores such goods while they are in transit in violation of the
provisions of this Act; or
– or stores or keeps in stock goods or supplies goods
– which have not been accounted for in the books or records maintained by him
– in prescribed manner
– all such goods and the conveyance used as a means of transport for carrying the said
goods
– shall be liable to detention,
– release shall be made only after payment of applicable tax, interest and penalty
– or upon furnishing a security, equivalent to the amount of the applicable tax, interest and
penalty
• No tax, interest or penalty shall be determined without giving a notice to
show cause and without giving the person a reasonable opportunity of
being heard.
14. Dell - Internal Use - Confidential
Confiscation of goods and levy of penalty
• If any person –
i. supplies any goods in contravention of any of the provisions of this Act or rules
made thereunder leading to evasion of tax; or
ii. does not account for any goods on which he is liable to pay tax under this Act; or
iii. supplies any goods liable to tax under this Act without having applied for the
registration; or
iv. contravenes any of the provisions of this Act or rules made thereunder with intent
to evade payment of tax, then, all such goods shall be liable to confiscation and the
person shall be liable to penalty under section 66 – Section 70(1) of the Model
GST Law.
• Goods belong to Government after confiscation – Where any goods are
confiscated under this Act, the title of such goods shall thereupon vest in the
appropriate Government – Section 70(3) of The Model GST Law.
15. Dell - Internal Use - Confidential
Contd…
• Confiscation after notice and adjudication order – No order of confiscation of
goods and/or imposition of penalty shall be issued without giving a notice to show
cause and without giving the person a reasonable opportunity of being heard –
Section 70(4) of the Model GST Law.
• Police to assist in taking and holding possession – 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 – Section 70(6) of the Model GST Law.
• Redemption fine in lieu of confiscation – Whenever confiscation of any goods is
authorized by this Act, the CGST/SGST officer adjudging it shall give to the owner
of the goods or, where such owner is not known, the person from whose possession
or custody such goods have been seized, an option to pay in lieu of confiscation
such fine as the said officer thinks fit. Such fine shall not exceed the market price of
the goods confiscated, less the tax chargeable thereon – Section 70(2) of The Model
GST Law.
16. Dell - Internal Use - Confidential
Confiscation of conveyances
• Any conveyance used as a means of transport for carriage of taxable goods without
the cover of documents as may be prescribed in this behalf shall be liable to
confiscation, 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
• Where any 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 – Section 71 of The Model GST Law.
17. Dell - Internal Use - Confidential
Confiscation or penalty not to interfere
with other punishments
• No confiscation made or penalty imposed under the provisions of this Act or the
rules made thereunder shall 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 – Section 72 of The Model GST Law.
18. Dell - Internal Use - Confidential
PROSCECUTION OF OFFENCES UNDER
GST
19. Dell - Internal Use - Confidential
Prosecution
Prosecution
• Prosecution is the institution or commencement of legal proceeding; the process of exhibiting
formal charges against the offender. Section 198 of the Criminal Procedure Code defines
“prosecution” as the institution and carrying on of the legal proceedings against a person.
Offences which warrant prosecution
Section 73 of the MGL codifies the major offences under the Act which warrant institution of criminal proceedings and
prosecution. 12 such major offences have been listed as follows:
1) Making a supply without issuing an invoice or upon issuance of a false/incorrect invoice;
2) Issuing an invoice without making supply;
3) Not paying tax collected for a period exceeding 3 months;
4) Not depositing any tax that has been collected in contravention of the Act for a period exceeding 3 months;
5) Availing or utilizing credit of input tax without actual receipt of goods and/or services;
6) Obtaining any fraudulent refund;
7) Furnishing false information or falsification of financial records or furnishing of fake accounts/ documents with intent to
evade payment of tax;
8) Obstructing or preventing any official in the discharge of his duty;
9) Dealing with goods liable to confiscation i.e. receipt, supply, storage or transportation of goods liable to confiscation;
10) Receiving/dealing with supply of services in contravention of the Act;
11) Failing to supply any information required of him under the Act/Rules or supplying false information;
12) Attempting to commit or abetting the commission of any of the above 11 offences
20. Dell - Internal Use - Confidential
Contd.
Punishment prescribed on conviction of any offence
Section 73 (1) prescribes as follows:
Section 73(2) provides that a second or any subsequent conviction for an offence in
this section shall be punishable with imprisonment for a term that may extend to 5
years and a fine. However, no imprisonment for any of the offences shall be for a
period less than six months.
Offence involving-- Punishment (Imprisonment
extending to--)
Tax evaded exceeding
Rs.250 lakh
5 years and fine
Tax evaded between Rs.50
lakh and Rs.250 lakh
3 years and fine
Tax evaded between Rs.25
lakh and Rs.50 lakh
1 years and fine
21. Dell - Internal Use - Confidential
Cognizance of offences
• Section 74 of MGL provides that no person shall be
prosecuted for any offence without the prior sanction of the
designated authority and no court inferior to that of a
Magistrate of the First Class shall try any such offence.
22. Dell - Internal Use - Confidential
Presumption of Mens Rea
• While committing an act, a “culpable mental state” is a state of mind wherein-
− the act is intentional;
− the act and its implications are understood and controllable;
− the person committing the act was not coerced and even overcomes hurdles to the
act committed;
− the person believes or has reasons to believe that the act is contrary to law.
• Section 75 of the MGL presumes the existence of a state of mind (i.e. “culpable
mental state” or mens rea) required to commit an offence if it cannot be committed
without such a state of mind.
• The burden of proof is on the accused in this regard.
• The fact of existence of mens rea is proved when Court believes it to exist beyond
reasonable doubt.
23. Dell - Internal Use - Confidential
Offences by companies and certain other
persons
• Prosecution of offences by companies
Section 77 of the MGL provides that
– every person who was in-charge of or responsible to a company for the conduct of its
business shall,
– along-with the company itself,
– be liable to be proceeded against and punished for an offence committed by the company
– while such person was in-charge of the affairs of the company.
– If any offence committed by the company
• has been committed with the consent/ connivance of, or
• is attributable to negligence of—
• any officer of the company
– then such officer shall be deemed to be guilty of the said offence
– and liable to be proceeded against and punished accordingly.
24. Dell - Internal Use - Confidential
COMPOUNDING OF OFFENCES UNDER
GST
25. Dell - Internal Use - Confidential
Compounding of Offences (S. 78)
Compounding means forbearance from prosecution for consideration or any other private motive .
Offences that may be compounded:
• all offences under the act
• before or after institution of prosecution
• compounding may be allowed by competent authority on payment of compounding amount
• compounding to be paid by the accused
• to the Central/ State government, as the case may be
Restrictions to compounding
The following offences cannot be compounded:
– offences prescribed in clause (a) to (g) of sub-section (1) of S. 73 and attempt or abatement to commit the said offences, if once compounded
– offences (other than the above offences) under any SGST Act/CGST Act/ IGST Act in relation to supplies exceeding value of Rs.1 Crore, if
once compounded
– offences which is also an offence under NDPS Act or FEMA or any other Act other than CGST/SGST
– any other class of offences or persons that may be prescribed in this behalf.
• Compounding of offence to not effect proceedings if any instituted under any other law
• Compounding to be allowed only after payment of tax, interest and penalty
26. Dell - Internal Use - Confidential
Contd.
Monetary limits for compounding of offence
• To be as per rules to be prescribed, subject to following minimum and maximum
compounding amount limits.
• lower limit: greater of the following –
– 50% of tax involved, or
– Rs.10,000
• upper limit: greater of the following –
– 150% of tax involved or
– Rs.30,000
Consequence of compounding
• on payment of the compounding amount
• no further proceeding shall be initiated under this Act
• against the accused for the same offence
• any criminal proceeding if already initiated shall stand abated
27. Dell - Internal Use - Confidential
Athena Comments
• Scope of compounding of offences is limited by the number of restrictions brought
in as mentioned above
• It is once in a lifetime opportunity
• The compounding provisions read with offences and prosecution provisions make
GST law a strict law and brings in necessity of abidance more emphatically and
makes failures more risk inclined
• Such shall aid in a higher degree of compliance and tighten the noose on the
defaulters