Section 131 of CGST Act, 2017 : Section 131: Confiscation Or Penalty Not To Interfere With Other Punishments

Explanation using Example

Imagine a business owner, Mr. Sharma, who has been found guilty of evading Goods and Services Tax (GST) by underreporting sales. As a result, the authorities confiscate some of his goods and impose a penalty as per the provisions of the Central Goods and Services Tax Act, 2017. However, Section 131 of the Act clarifies that this action does not exempt Mr. Sharma from facing additional legal consequences for his actions. Therefore, even after the confiscation and penalty, Mr. Sharma could still face criminal charges under other applicable laws, such as the Indian Penal Code, for fraud or cheating, since GST evasion is also a criminal offense.