Answer By law4u team
1. Failure to Register Under GST: - Businesses exceeding the threshold limit must register under GST. - Consequence: Penalty of 10% of the tax due or Rs. 10,000, whichever is higher. 2. Failure to File GST Returns: - Non-filing or delayed filing of GSTR-1, GSTR-3B, etc. - Consequence: Late fees of Rs. 50 per day (Rs. 20 per day for NIL returns) and interest at 18% per annum. 3. Issuing Incorrect or Fake Invoices: - Generating invoices without supplying goods or services. - Consequence: Penalty equal to the amount of tax evaded or Rs. 10,000, whichever is higher. 4. Non-Payment or Short Payment of Tax: - Failure to pay the full tax amount or intentional short payment. - Consequence: 10% of the tax amount due (if not intentional); 100% penalty if intentional. 5. Claiming Excessive Input Tax Credit (ITC): - Claiming ineligible ITC or wrongful claims. - Consequence: Reversal of excess ITC claimed along with interest and penalty. 6. Not Maintaining Proper Records: - Failure to maintain required documents, accounts, and records. - Consequence: Penalty of Rs. 25,000. 7. Fraudulent GST Registration: - Obtaining GST registration by means of fraud or misrepresentation. - Consequence: Cancellation of registration and imprisonment in severe cases. 8. Failure to Issue GST-Compliant Invoices: - Not issuing correct tax invoices or improper invoicing. - Consequence: Penalty of up to Rs. 25,000. 9. Non-Compliance with E-Way Bill Requirements: - Transporting goods without generating or updating E-Way Bills. - Consequence: Penalty of Rs. 10,000 or the amount of tax sought to be evaded, whichever is higher. 10. Obstructing GST Officers or Preventing Inspection: - Hindering officials during search, seizure, or inspection. - Consequence: Penalty and possible imprisonment up to 6 months.
