The GST legislation specifically specifies the definitions of the crimes and the punishments imposed under each case. This is vital knowledge for all company owners, CAs, and tax practitioners as an accidental error can have significant repercussions.

In order to deter tax evasion and corruption, GST has implemented stringent regulations on fines, prosecution, and detention for offenders.

GST Offenses

There are 21 violations under the GST. We’ve classified them for a clear understanding.

GST Offenses & Penalties

Fake/false invoices

  • A taxable individual provides any goods/services without an invoice or issues a false invoice.
  • Any invoice or receipt shall be given without the delivery of goods/services in breach of the regulations of the GST.
  • It provides receipts utilizing the identification number of some other taxable bonafide individuals. 

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  • It publishes misleading info when filing under the GST.
  • It publishes false financial information/documents or files false returns to reduce or escape paying tax.
  • Doesn’t really offer information or provides inaccurate information during the proceedings.

Tax evasion.

  • The person collects any GST but does not send it to the government in under 3 months.
  • Even though the person receives any GST in violation of the act, it must still be deposited with the government in under 3 months. The inability to do so would be an infringement under the GST.
  • The individual shall receive the reimbursement of any CGST / SGST through fraud.
  • The person collects and/or uses input tax credits without any of the actual bills of goods and/or services.
  • He/She purposely suppresses his revenues in order to escape tax.

Supply and transport of goods

  • The person carries goods without appropriate documents.
  • Supplies/transport items that he suspects will be seized.
  • Destruction/tampering of items that have been confiscated.


  • The person is not licensed under the GST although he is allowed by law.
  • The individual does not deduct TDS or, wherever necessary, subtract less.
  • He/She does not collect TCS or collect less if necessary.
  • As an input service distributor, it accepts or delivers input tax credits in breach of the law.
  • In the course of his duties, he/she hinders the proper officer. 
  • He/She doesn’t really keep all the records that he was allowed to keep by law.
  • He/She Destroys all proof.

GST Penalty

If all of the offenses are performed, the penalty would have to be charged in compliance with the GST. The concepts on which all penalties are focused are also laid down in the statute.

In the case of late filing 

Late filing triggers a fine termed late filing. It will cost you Rs. 100 each day under the Act. It’s 100 both in CGST & SGST. Max is going to be Rs. 200 / day. The highest value is Rs . 5,000. There seems to be no late charge for IGST in the event of late filing.

In addition to the late charge, interest must be paid at 18% a year. The tax to be collected must be determined by the taxpayer. The term shall be from the day after filing to the payment date.

For not filing

If you do not file a GST return, then it is impossible to file future returns. For eg, if the GSTR-2 August return was not submitted, then the next GSTR-3 return, as well as the corresponding September return, could not be filed. The late submission of the GST return would therefore have a cascading effect resulting in heavy penalties and fines.