An offence means a violation of a law or breaking a rule which amounts to an illegal act. Simply put, breaking or violating any provision of the GST Act and GST rules is an offence. The Government lists the types of offences that will invoke penalties.
The penalties and fines for the offences under GST are stricter than the previous regime. Taxpayers should refrain from undertaking fraudulent and corrupt activities.
For the 21 types of offences, for fraud cases, penalty will be 100% (minimum Rs. 10,000)
Types of Offences under GST by Companies, LLPs, HUFs and others
For any offence that a company commits, the authorities will hold the following people responsible:
- officer in charge such as the director, manager, secretary
- the company liable.
LLPs, HUFs and trusts have a partners, kartas and managing trustee respectively. So, they ill have to pay the penalties mentioned under GST.
The GST Council can also prosecute offenders who are found guilty of deliberate intention of fraud in a criminal court. To determine whether a person has committed a fraud, the Joint Commissioner of SGST/IGST can authorize any officer to inspect the place/s of business. After conducting a thorough inspection, the concerned authorities will make a decision against the defaulter.
If the defaulter is unhappy with the order that the authorities passed against him, he can appeal against such a decision.
A taxpayer will have to pay the pre-defined penalties if he/she is guilty of committing the following offences.