Standardised PPT on GST - PowerPoint Presentation

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Standardised PPT on GST

Indirect Taxes Committee

The Institute of Chartered Accountants of IndiaSlide2

Disclaimer and Copy right

This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s).

The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at

idtc@icai.in

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© The Institute of Chartered Accountants of India

This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI. Slide3

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Offences and PenaltiesSlide4

Offences and Penalties – Sec 122

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Nature of Offence

Prescribed Penalty

Supplies any goods without invoice

Issues invoice without supply of goods

Collects tax amount but does not pay the same into the appropriate government treasury

Collects tax in contravention of the Act

Fails to deduct or collect tax and also fails to pay it to the appropriate governments

Takes input tax credit without receipt of goods

Obtains refund by fraud

Manipulates financial records

Fails to get registered

Gives false information

Transports taxable goods without documents

Fails to maintain books of accounts.

Fails to provide information and required documents.

Takes or distributes

credit in violation

Obstructs or prevents a officer in discharge of duty

Suppresses turnover

Tampers or destroys evidence

Disposes or tampers goods detailed or seized

etc

Higher of following:

Rs. 10,000/-

or

An amount equivalent to the amount of tax evaded/not

deducted/collected

or input

tax

credit availed or

distributed or refund claimed

in the matterSlide5

Offences and Penalties – Sec 122

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Nature of Offence

Prescribed Penalty

Non

payment or short payment of tax or erroneous refund or wrong availment or utilisation of input tax credit by a registered person

(a) for reason other than fraud or any wilful misstatement or suppression of facts

(b) for reason of fraud or any wilful misstatement or suppression of facts

(a) Higher of following:

Rs. 10,000/-

or

10% of tax due

(b) Higher of the following:

1. Rs 10,000/- or

2. Tax due

Applicable

to any person

who aids or abets any of the offences specified in clauses (

i

) to (xxi) of sub-section 85(1);

or

Who acquires possession of, or deals with any goods which he knows or has reason to believe are liable to confiscation;

Receives any supply of services in contravention

Fails to appear before GST officer to honour the summons;

Fails to issue invoice or record it

Rs.

25,000/-Slide6

Offences and Penalties – Sec 123, 124 & 125

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Nature of Offence

Prescribed Penalty

Failure to Furnish information return u/c 150

Rs. 100/ day for the period during which such failure continues

Subject to maximum penalty

of Rs. 25,000

Failure to furnish any information or return under section 151,—

without reasonable cause fails to furnish such information or return as may be required under that section, or

wilfully furnishes or causes to furnish any information or return which he knows to be false.

Upto Rs. 10000 fine

in case of a continuing offence to a further fine which may extend to Rs. 100/ day after the first day during which the offence continues

subject to a maximum limit of Rs.

25,000/-

General Penalty –

contravention of any provisions of this Act or any rules for which no penalty is separately provided

Upto Rs. 250000Slide7

General Discipline related to Penalty –

Sec 126

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No Penalty for minor breach/mistake where the tax involved is less than Rs. 5,000/- and are easily rectifiable.

No penalty will be imposed without issuing SCN or giving personal hearingPenalty cannot be levied suo-moto on contravention. Reasonable explanation needs to be provided by the OfficerFor voluntary disclosure of non-payment of tax – consideration while levying penalty

S-126 will not apply, where the penalty is expressly prescribed under the Act as either a fixed sum or expressed as a fixed percentageSlide8

Detention, seizure and confiscation of goods and / or conveyances – Sec 129 and 130

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Sec No.

Nature of Offence

Repercussion

129

Applicable to any person who:

Transports or stores any goods while in transit in violation of provision of Act; or

Detention / seizure of goods and conveyance used for transport of goods. Can

be released on

Where owner comes forward

Payment of an amount of 2% of value of goods or twenty five thousand rupees, whichever is less, in case of exempted goods.

Payment of tax and penalty (100% of tax) for goods other than exempted goods, OR

(b) Where owner does not come forward

Payment of an amount of 5% of value of goods or twenty five thousand rupees, whichever is less, in case of exempted goods

Payment of tax and penalty (50% of value of goods-tax paid) in other cases

(c) Security equivalent to the amount as stated in (a) or (b)Slide9

Detention, seizure and confiscation of goods and / or conveyances – Sec 129 and 130

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Sec No

Nature of Offence

Repercussion

130

Applicable to any person who:

Supplies / receives goods in contravention of any of the provisions of this Act leading to evasion of tax;

OR

does not account for any goods on which he is liable to pay tax

OR

supplies

goods liable to tax without having applied for the registration

OR

contravenes provisions of this Act with intent to evade payment of tax

OR

uses conveyance as means of transport for carriage of taxable goods in contravention of this Act

All such goods and / or conveyance shall be liable to confiscation and the person shall be liable to penalty under section 122

Option to pay fine in lieu of confiscation Slide10

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Prosecution and Compounding of OffencesSlide11

Prosecution and Compounding of Offences – Sec 132

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Amount of Tax Evaded or ITC wrongly availed or utilised or Refund wrongly taken

Period of Maximum Imprisonment and Fine

Exceeding Rs. 500 Lakhs

5 Yrs. and Fine

Exceeding Rs. 200 Lakhs upto Rs. 500 Lakhs

3 Yrs. and Fine

Exceeding Rs. 100 Lakhs upto Rs. 200 Lakhs

1 Yr. and Fine

Commits/

abets in the commission of certain specified offences

Imprisonment

up to 6 months and/ or fine

In

case of repetition of Offence

5 Yrs. and Fine

Provides for power to initiate legal proceedings against the offenders who commits any of the 12 enlisted offences

Offences include clandestine removal of goods, retention of collected taxes beyond 3 months, irregular availment or utilization of input tax credit, obtaining fraudulent refund, fabrication of financial records, abatement etc.Slide12

Prosecution and Compounding of Offences – Sec 134, 135, 136 and 137

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Offences under this Act to be tried only before the Court of Judicial Magistrate First Class or above only with prior approval of designated authority. (Sec 134)

Obligation cast on the offender to prove the absence of

mens-rea, else its implied that offence committed intentionally with guilty mind. (Sec 135)Statement recorded during the course of investigation or enquiry relevant to prove the truthfulness of the facts when (Sec 136):Made by person not available during proceedingsCourt admits that statement as evidence after examining the person making the statement as witness.

Offence committed by Company : person-in-charge

such as Director, Secretary, Manager etc., considered guilty and liable for punishment along with company (Sec 137)

Offence Committed by Partnership Firm, Limited Liability Partnership, Hindu Undivided Family or Trust : Partner/ Karta of Family/ Managing Trustee of the Trust deemed to be guilty. (Sec 137)

If proved that person was unaware or took suitable precautions to prevent offence – No punishmentSlide13

Compounding of Offences

: Sec 138

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Compounding is available only one time in respect of certain specified offences

Compounding is not available for the subsequent time in respect of other offences and offences under SGST and IGST, if in the previous compounding case, value of supplies exceeds Rs. 1 Crore. A person convicted for an offence under this Act cannot apply for compoundingA person accused of committing certain specified offences cannot apply for compoundingCompounding shall be allowed only after making payment of tax, interest, and penalty.

Minimum Compounding amount =

Rs

. 10,000/- or 50% of tax involved whichever is higher.

Maximum compounding amount =

Rs

. 30,000/- or 150% of tax whichever is higherSlide14

Thank You

For any Clarification, Please Contact

Indirect Taxes Committee of ICAI

Email:

idtc@icai.in

, Website:

www.idtc.icai.org

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