GST Penalties and Appeals

GST Penalties and Appeals

The GST Law has defined its offenses and penalties that are levied in each scenario. This is an important topic for every business owner, CA, CS as any mistake can cause severe consequences.

Overview

GST law prevents many tax evasion and corruption over tax as it contains strict provisions for offenders regarding penalties, prosecution and arrest. The introduction of GST Law Government of India ensures to prevent tax evasion and corruption and also introduces stricter liabilities for the non-payment of the same.

Offences and Penalties

Offenses

There are 21 offences which are being introduced under GST law. Some of the offences which has been introduced by the introduction of GST law are as follows-

  1. When the company/organization or an individual has not enrolled themselves under GST Law, even when it is required by law.
  2. Supply of any goods/ services without any invoice or issuing a false invoice.
  3. The issue of invoices by a taxable person using the GSTIN of another bonafide taxpayer.
  4. Submission of false information without getting registered under GST Laws.
  5. Submission of fake financial records/ documents or files,or fake returns to evade tax.
  6. Obtaining refunds by fraud.
  7. Deliberate suppression of sale to evade tax.
  8. Opting for a composition scheme even though a taxpayer is ineligible.

Penalty

If any of the offense is committed by a taxpayer, then he is liable for the penalty which he has to pay under GST. the principals on which these penalties are based are mentioned by law.

For Late Filing

If returns of GST are filed late i.e. after the last date of filing, then it would involve a penalty of Rs. 100 per day as per the Act. So it is 100 under cgst and 100 under sgst so, total late fee would be levied of Rs. 200/- per day along with the interest of 18% per annum. The time period will be from the next day of filing of the date of payment.

For not filing

If you are not filing your GST return, then it will have a cascading effect as you will not be able to file your subsequent returns and therefore it involves heavy penalty and fines.

For the 21 offenses with no intention of fraud or tax evasion

If the offender is not paying the tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000/-.

For the 21 offense for the intention of fraud or tax evasion

In this case the offender has to pay 100% penalty for tax evasion subject to a minimum of Rs, 10,000/-. The tax evader could be imprisoned for a term of 1 year for tax amount 100-200 lakhs, upto 3 years for 200-500 lakhs and upto 5 years for the tax amount of 500 lakhs and above.

Inspection under GST

The Joint commissioner of CGST and SGST may have reasons to believe hat in order to evade tax, a person has suppressed any transaction or claimed excess input tax credit etc. then the joint commissioner can authorize any other officer of CGST/SGST in writing to insect places of business of the suspected evader. 

Search and Seizure under GST

The joint commissioner can order for search and seizure if he finds any person liable for tax evasion on the basis of the inspection. 

Goods in Transit

If a person in charge is carrying goods exceeding 50,000/- is required to carry the following documents-

  1. Invoice or bill or delivery challan
  2. Copy of e-way bill

Compounding of offences under GST

Compounding offenses is a shortcut method to avoid litigation. In case of prosecution each time of hearing in criminal proceedings a person has to appear before a magistrate along with his advocate which is little time consuming process.

In compounding offence, the accused is not required to appear personally and can be discharged on payment of compounding fee which cannot be more than the maximum fine as applicable under GST.

Prosecution under GST 

If someone has committed crime under GST law deliberately, then he is subject to criminal prosecution under the law. A few example of these offenses are follows-

  1. Issue of an invoice without supplying any goods and services 
  2. Obtaining refund of any CGST/SGST by fraud
  3. Submitting fake financial records/ documents or files and fake returns to evade tax.
  4. Helping another person to commit fraud under GST.

Arrest under GST Law

Any person accused of committing a cognizable offense is entitled to get arrested within 24 hours of the offense. Then he is to be produced before the Magistrate within 24 hours of the arrest.

Appeal

Any person aggrieved by the decision of tribunal or court may appeal in the appellate court. If the person is aggrieved by the decision of fit appellate authority then he could appeal in the National Appellate Tribunal and then to the High court and Supreme court thereafter.

Procedure For Registration Under Goods And Service Tax (GST) In India

gst registration online

KINDS OF REGISTRATION

THERE ARE THREE KIND OF GST REGISTRATION

1. Mandatory registration
2. VOLUNTARY REGISRATION
3. REGISTRATION BY DEPARTMENT

Before getting registered under GST which came into force in India in July 2017,
we should know what is GST. GST is known as Goods and Service Tax which covers
both supply of Goods and services.
1. Any supplier either Individual/ firm/ company /any organization doing
business or services in India and whose turnover exceeds the threshold
limit i.e 20 lacs at present are required to get mandatorily registered under
GST.
2. It authorizes the person for collection of GST from the customers.
3. It also allows claim of Input tax credit or GST paid on purchases of goods
and /or services and utilizing the same for payment of taxes due on supply
of goods and or services.

REQUIREMENT OF DOCUMENTS FOR REGISTRATION
1.Pan card/Aadhar card
2.Electricity bill/ Telephone bill/Rent Agreement/ ownership proof/No objection
Certificate.
3.MOA/AOA OR Partnership Deed
4. Bank statement/ cancelled cheque
5. Photograph in Individual and partnership
6.Email Address

7.Mobile No

PROCESS OF REGISTRATION OF GST
1. First go to Govt site. GST.Gov.in
2. In Part a of form GST REG -01 PAN No. Mobile No. email Id . should be
filled.
3. Temporary Reference Numer shall be received on mobile and Email after
otp verification.
4. After that part B of GST RG 01 shall have to filled up and duly signed by
DSC/EVC and documents should be uploaded.
5. An acknowledgement shall be sent in GST RG 02 after successful submission
of above said firm.
6. If any objection is intimated in GST RG 03 it will have to be cleared by
visiting related GST office or through GST RG 04.
7. If application accepted you shall get registration Certificate in GST RG 06
otherwise Rejection certificate in GSR RG 05

How to file GST return in India?

GST Return Filing

After the introduction of GST in India from 1 st July, 2017, every registered taxpayer is required to file GST return in order to avoid levy on hefty penalty and fines. In this blog we will explain every aspect of GST returns including the meaning of GST returns, their type and procedure to file GST returns.

‘One Nation One Tax’ is the basic motive behind the introduction of GST regime in India. With the introduction of GST in India, the Government of India has made an attempt to streamline the taxation system of the country. Under the GST regime, the detailed information regarding the transactions is required to be submitted by the registered taxpayers. Moreover, under the new regime more stringent compliances are prescribed to avoid tax evasion. To ensure that the taxpayers are compliant with the regulations made the provision of hefty penalty and fines are also made by the Government.

To promote the ease of doing business in India the Ministry of Finance has developed a widespread IT system facilitating the recording of invoices and data of taxpayers at one place.

Further, under the GST regime, the taxpayers can easily obtain GST Registration, file returns and upload invoices on the online portal of Goods And Service tax.

What is GST return?

GST return is a document containing the details of sales and purchase undertaken by taxable person. Every specified person is required to file GST return with the department before the specified due date. the concept of GST returns has been crafted to make sure that all the transactions match with each other and there is no transaction left unnoticed.

There are multiple types of GST returns depending upon the category of taxpayer that is required to be filed by the registered taxpayer. Let us take a brief look at them.

For the normal taxpayers:

GSTR-1:- this return shall be submitted to provide the details of outward supplies of taxable goods or services affected during the previous month. The return should be filed by 10 th of succeeding month.

GSTR-2A:- it will be auto generated, and made available on 11 th of the succeeding month for the recipients to see and validate the information therein. The recipients are empowered o make any modification or amendment based on their books of accounts from 11 th to 15 th of succeeding month.

GSTR-2:- this return is the culmination of all inward supply of goods and services as approved by the recipients of the services. This form is required to be filed by 15 th of the next month. The details of GSTR-2A will be auto-populated into it.

GSTR-1A:- after filing GSTR-2 on the 15 th of the subsequent month, the details in the GSTR-1A will be auto generated. It will contain the details of all the modifications made. The supplier shall have the choice to accept or reject the changes made by the recipient. If the supplier accept the changes then GSTR-1 will stand revised.

GSTR-3:- Through this return the details of all outward as well as inward supply of goods and services as filed in GSTR-1 and GSTR-2 are furnished. The tax liability and input tax credit availability will be determined by GSTN after considering the details of both the months.

GSTR-3A:- through this return, a notice will be given to the person who fails to furnish the return within due dates. It will be generated after the 15 days from the default.

GSTR-9:- every registered taxpayer is required to file GSTR-9 by 31 st December of the succeeding month. It is a sum up of all 12 monthly GSTR-3 filed by the taxpayer and will contain the details of tax paid during the year along with the details of import and export.

GST ITC-1:– after the details filed under GSTR-3 are fully accepted, then final input tax credit shall be communicated through form GST ITC-1. The details of ITC-1 should be confirmed in due time to avail the credit for that month. If the same is not done in due time, then it will disallow the credit of the month and will be computed as a tax liability for the month instead.

GST returns to be filed by composite taxpayers:

GSTR-4A:- every taxpayer who is registered under he composition scheme is liable to file a quarterly return in GSTR-4A. it will contain the details of inward supplies as reported by suppliers in GSTR-1.

GSTR-4:- through auto generated details of GSTR-4A, the taxpayer can furnish all his outward supplies here. It will also contain the details of tax payable. It is required to be filed on quarterly basis and 18 th of the subsequent month.

GSTR-9A:- every composite taxpayer is required to file annual return by 31 st December of the subsequent fiscal year. It will contain the consolidated details of the quarterly returns filed along with the details of tax paid.

GST return to be filed by non- resident taxpayer:

GSTR-5:- every non resident taxpayer is required to file GSTR-5 containing the particulars of outward supplies, imports, tax paid, input tax availed and remaining stock. The due date for filing GSTR-5 is 20 th of the subsequent month or if the registration is given up, then within the 7 days within the expiry of registration.

Procedure to file GST return:

For filing the GST returns you can simply visit the official site of GST, login to your account, and simply upload the details of your invoices. If you are facing any kind of problems in filing your GST return you can easily get it filed by our  BIAT Consultant. One important thing to be noted here that it is very important to take utmost care while filing the return and file correct returns.

 

BIATConsultant is leading consultant in India providing GST Registration online and online GST return filing .

HOW GOODS AND SERVICES TAX (GST) HAS IMPACTED BUSINESSES IN INDIA

gst registration by biatconsultant

It has been quite some time since GST has been implemented in India. The
main objective of the new tax regime was to make one tax system in one
nation. Let us look at the way goods and services tax has impacted business in
India.

Small and medium businesses
The central goods & service tax (CGST) and state goods & service tax (SGST) has been combined in the new tax system. According to the new system, all the companies that have a turnover more than 20 lakh (10 lakh in some states) have come under the GST scanner. Previously the tax exemption for the SMEs was 5 lakh while the new tax exemption is increased to 20 lakh. This has created a positive impact and generated lot of revenue for the government.
Ease of doing business has been increased as double taxation policies have
been removed. Tax burden on new business has been reduced and faster
delivery of the services has been the positive effects in the implementation of
GST.

How GST impacted real estate industry?
Real Sector is one of the most important sectors in India. GST has brought lot
of transparency and relief in real estate sector of India.
Under GST 12% tax has been levied which was 6.5% before GST tax. Due to
GST, the developer either has to bear high tax burden or will have to increase
the net price of the infrastructure to meet the new tax requirements. As the
ready-to-move-in projects are kept out of GST, developers can get some
benefit for the construction that are in initial stages. Cost of cement and other
building material has increased with the new tax system. So the impact has
been neutral in real estate industry because although some building material
prices have been increased but it has cut down additional costs and provided a
transparent medium.

Impact on automobile sector

Automobile sector is one of the most important sectors. This sector produces a very large number of cars and bikes annually. The central and state
government imposed several taxes like excise tax, road tax, VAT etc. under the
GST tax. GST has hugely impacted the automobile industry. The government
increased the tax from 15% to 25% on mid-sized vehicles. There is some good
news for the importers as they would be able to claim excise duty and VAT.
GST on the cars and bikes was set under the 28% mark. The overall result is
that the implementation of GST has reduced the cost of buying bikes and cars.
GST has resulted in a good growth in this sector.

How GST has impacted FMCG companies?
The GST has impacted FMCG companies very strongly. GST has made possible more purchase of FMCG products in the festive season. The FMCG companies like Pepsico, Dabur has generated lots of profit in the festive season. Companies have been dependent on the advertisement to boost their revenue during the non-festive season.

 

So in case you are looking for GST registration for selling of goods or services ,  consult BIATConsultant experts to guide you throughout the process and will get your GST number registered