Section 122 of CGST Act, 2017 : Section 122: Penalty For Certain Offences

Explanation using Example

Example:

Imagine a scenario where Mr. Sharma runs a furniture manufacturing business. He sells a batch of chairs to a customer but decides not to issue an invoice to avoid reporting the sale and paying the corresponding GST. This act falls under Section 122(1)(i) of the Central Goods and Services Tax Act, 2017, as he has supplied goods without issuing an invoice.

Upon inspection, the GST authorities discover the discrepancy. As a result, Mr. Sharma is liable to pay a penalty. The penalty, as per the Act, would be either ten thousand rupees or an amount equivalent to the tax he evaded by not issuing the invoice, whichever is higher.