At  AJSH & Co., we are all about service. We have tremendous experience in the field of chartered accounting and have worked with chartered accounting giants in India and abroad. We are specialists in areas like taxation, accounting, auditing, valuation and foreign investment. We help people from other countries and NRIs set up business enterprises in India. Registration of a company is quite a long procedure. We handle each and every step from scratch so that the client faces no problem.

Being a destination based, transaction wise tax, Goods and Services Tax (GST) ropes in strict compliance procedures for all the taxpayers or people falling under the gamut. Since every transaction is being recorded and tracked between the source and destination, it is obligatory for the taxpayers to maintain and declare information with utmost accuracy.

Offences To have a crystal clear movement of goods intra-state or inter-state, reduce corruption and efficient tax collection system, GST defines strict penalty rules and offenses guidelines which the taxpayers have to follow. Below listed are the offences and applicable penalties under GST Act:

A supplier supplies goods or services without any proper invoice or has issued a false invoice.

He affects the issuance of an invoice without supplying the goods or services as per provisions of GST.

He uses the GSTIN of any other person instead of his own.

He submits false information during registration.

Penalties

If any of the offenses are committed, a penalty will have to be paid under GST. The principles on which these penalties are based are mentioned by the law. An offender who has committed any of the above 21 offences by not paying tax or making short payments with no intention of fraud or tax evasion must pay a penalty of 10% of the tax amount due subject to a minimum of INR 10,000. Consider – in case tax has not been paid or a short payment is made, a minimum penalty of INR 10,000 has to be paid. The maximum penalty is 10% of the tax unpaid. However, an offender has to pay a penalty amount of tax evaded/short deducted etc., i.e. 100%penalty, subject to a minimum of INR 10,000, if it had an intention of fraud or tax evasion.

Penalties for late filing and non-filing: Late filing attracts penalty called late fee. The late fee is INR 100 per day per Act. So it is INR 100 under CGST & INR 100 under SGST. Total will be INR 200/day (subject to changes announced via Notifications). The maximum is INR 5,000. There is no late fee on IGST in case of delayed filing. Along with late fee, interest has to be paid at 18% per annum. It has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of filing to the date of payment. Further, if you don’t file any GST return then subsequent returns cannot be filed. For example, if GSTR-2 return of August is not filed then the next return GSTR-3 and subsequent returns of September cannot be filed.  Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.

Appeals A person unhappy with any decision or order passed against him under GST can appeal against such decision. The first appeal against an order by an adjudicating authority goes to the First Appellate Authority. If the taxpayer is not happy with the decision of the First Appellate Authority they can appeal to the National Appellate Tribunal, then to the High Court, and finally to the Supreme Court. To avoid the long process of appeal and litigation, a taxpayer may request for the advance ruling under GST. The taxpayer asks for clarification from GST authorities on GST treatment before starting the proposed activity. The tax authority gives a written decision (called advance ruling) to the applicant on the query.

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