GST Compliances

What are the different penalties for GST non-compliance?

  1. Late Fee for Delayed Filing of Returns:
  • Late fees are applicable for the delayed filing of GST returns. The late fee amount may vary based on the type of return (e.g., GSTR-3B, GSTR-1) and the duration of the delay.
  1. Interest on Delayed Payments:
  • Interest is levied on the outstanding tax amount for delayed payments. The interest rates may vary based on the type of tax (e.g., CGST, SGST, IGST) and the period of delay.
  1. Incorrect or False Return Filing:
  • Penalties may be imposed for filing incorrect or false returns. If a taxpayer provides inaccurate information intentionally or fails to disclose important details, penalties may be levied.
  1. Failure to Obtain GST Registration:
  • If a person liable to register under GST fails to obtain registration, penalties may be imposed. The penalty for not obtaining registration can be a fixed amount or a percentage of the tax evaded.
  1. Failure to Issue Proper GST Invoices:
  • Penalties may be imposed for failing to issue proper GST invoices or for issuing invoices without a valid GST registration number.
  1. Non-Payment or Short Payment of Tax:
  • If a taxpayer fails to pay the full amount of tax due or makes a short payment, penalties may be imposed. The penalty is typically a percentage of the tax amount that remains unpaid.
  1. Non-Compliance with Anti-Profiteering Provisions:
  • Businesses failing to comply with anti-profiteering provisions, which require passing on the benefits of reduced tax rates to consumers, may face penalties.
  1. Non-Compliance with E-way Bill Requirements:
  • Penalties may be levied for non-compliance with E-way bill requirements, such as failing to generate an E-way bill for the movement of goods.
  1. Non-Payment of Tax Collected at Source (TCS) or Tax Deducted at Source (TDS):
  • If a person collects TCS or deducts TDS but fails to remit the collected or deducted amount to the government, penalties may be imposed.
  1. Other Violations:
  • Various other violations, such as not maintaining proper records, failure to respond to notices, or not cooperating with tax authorities during audits, may attract penalties.

It’s important for businesses to comply with GST regulations to avoid penalties and legal consequences. The specific penalty provisions and amounts can be detailed in the GST laws and notifications, and consulting with a tax professional is recommended for accurate guidance on compliance and penalties.