Nature of Default Penalty Remarks

If you are regular GST dealer, GSTIN

needs to be mentioned on the name
GST Identification board. If you opted for Composition
Number (GSTIN) to be levy, you need to mention ‘Composite
Upto Rs. 25,000
mentioned on the name Taxable person’ on the name board.
board This rule is to make the buyer to
choose the supplier on seeing the
details on the name board.
Any registered person needs to display
GST Registration
his GST registration certificate at
Certificate (GST REG –
prominent place of business and at all
06) to be displayed at
Upto Rs. 25,000 additional places of businesses also.
prominent place of
This is to ensure that the person is
business at all places of
registered on seeing the certificate
business
itself.
Invoice is the document which contains
all details of supply and also an
important document based on which
Not issuing Proper ITC is availed. Hence, Invoice is given
Rs. 25,000
Invoice utmost importance in GST, rather any
indirect tax law. So, all details as
mentioned in rules need to be
mentioned on the Invoice.
Stock record is one of the mandatory
records to be maintained as per Rule
Not maintaining proper
Upto Rs. 25,000 56(2) of CGST Rules, 2017. From that
Stock record
record, the whole operations can be
known.
Rs. 10,000 or Input Tax Credit (ITC) is backbone of
100% of ITC GST structure. To avail ITC, proper
wrongly availed, Invoice is must.
Availing Input Tax
whichever is higher
Credit based on wrong
+ 24% Interest
Invoice
from date of
availment to date
of reversal
CGST & SGST is payable for intra-
state supplies and IGST for inter-state
Paying CGST instead of
supplies. Taxes paid under respective
IGST/SGST Pay Tax under
heads are transferred to respective
correct head with
governments. For Example, taxes paid
Paying SGST instead of no interest and
under SGST head is transferred to
CGST/IGST claim refund of tax
respective state government determined
paid under wrong
based on place of supply. So, Tax paid
Paying IGST instead of head.
under wrong heads leads to transfer of
CGST/SGST
tax to that respective government
which leads to wrong accounting.
 Hence, under GST, paying tax under
correct heads is important and hence,
the penalty. However, GST portal is
now generating challan automatically
after entering data in GSTR 3B.
Chance of making this mistake is
reduced to great extent.
Not filing GSTR 3B on Rs. 20 (Rs. 10 Timely Compliance is key to success
or before 20th of next SGST + Rs. 10 of GST return process and matching.
month CGST) per day of Hence, to encourage timely
delay in case of compliance, this penalty
NIL returns.
Not filing GSTR 1 on or
In other cases, Rs.
before due date
50 (Rs. 25 CGST +
Rs. 25 SGST) per
day of delay
Section 22 of CGST Act 2017
mandates every person to register if the
aggregate turnover exceeds Rs. 20
Not obtaining registration
Rs. 10,000 + ITC Lakhs. Every registered person needs
within 30 days of date on
during the period to pay tax and file returns. Hence,
which he is liable to get
of delay is lost registration is an important aspect in
registered
GST. Non-registration even though he
is liable or takes registration late are
both wrong doings.
Rs. 10,000 or This situation may lead to availment of
Invoice without supply 100% of tax higher ITC without actually selling
(Accommodation Bills) evaded , whichever goods.
is higher
Rs. 10,000 or This situation may lead to supply
Supply without Invoice
100% of tax without recording it and also the buyer
(Non- Issuance of
evaded, whichever may lose ITC since he doesn’t possess
Invoice)
is higher proper invoice.
In indirect taxes, the tax is collected
from the consumer and paid to
Collects GST but doesn’t Rs. 10,000 or Government. It is not an expense to the
pay to Government 100% of tax supplier. So, whenever tax is collected
within 3 months from evaded, whichever from a third party on behalf of
due date is higher Government and the same is not paid
leads to mis-appropriation of public
money.
If any of the provisions are defaulted
and nowhere penalty is specified, this
General Penalty Upto Rs. 25,000
general penalty provision may be
resorted to.