Video Transcription

Today let us talk about the offences and penalties under GST Law 

The draft copy of Model GST law lists down 21 offences and penalties applicable on each of them. Severe penalties have been mentioned for those who disobey the law.

There are 21 Offences Listed under GST Law India: 

  • Some of the major offences provided in the draft model are
  • Missed to issue invoice or issued wrong invoice for a supply;
  • Did not supply anything but still issued invoice;
  • Failing to pay collected TCS for a period exceeding 3 months;
  • If TCS is collected against the law but not paid to the government within 3 months;
  • Availing input tax credit without receipt of any goods or services;
  • Furnishing wrong information, financial records, etc. while filing with the intention to evade tax;
  • Failing to pay tax;
  • Supplying such goods which need to be confiscated and
  • Using someone else’s TIN to issue invoice;

General Principles for Imposing Penalties are: 

  • No penalty for minor breach
  • Penalty should align with severity of breach
  • Reason behind penalty should be disclosed
  • Lower penalty on voluntary disclosure of breach

Amount of Penalty as per Model GST:

  • Any offender who commits an offence which results in tax evasion can be punished with a penalty which is higher than the amount of tax evaded as per sec 66 (1)
  • If a person pays insufficient tax then he can be penalised with Rs. 10,000 or 10% of tax deficit, whichever is higher as per section 66 (2)

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