151.      EXAMPLE

             Determine the max penalty leviable under the GST Act and rules made there under in the following cases:

(i)    Failure to make payment of tax for reasons other than fraud

(ii)    Issue of invoice with incorrect or incomplete details

(iii)    Failure to account for an invoice in the books of account

(iv)    Failure to keep, maintain or retain books of accounts and other documents as required

ANSWER

(i)    Max penalty leviable is Rs.10,000 or 10% of the amount of tax due, whichever is higher. [Section 122(2)(a)]

(ii)    Max penalty is R.25,000. [Section 125]

(iii)    Max penalty leviable is Rs.25,000. (Section 125)

(iv)Penalty = Rs.10,000 or 10% of tax due , whichever is higher. [section 122(1)