CA Umesh Sharma
Quick Summary
Arjun (Fictional Character): Krishna, several cases of fraudulent claim input tax credit (ITC) have been caught by the GST authorities. Considering the same, in Union Budget 2020 it has been proposed to take massive steps to curb issuance of fake invoices. So, what are they? Krishna (Fictional Ch
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FAQ :
A false entry includes making entries in books of accounts, or omitting entries, to evade tax. This covers using forged documents, issuing invoices for non-existent supplies, or invoicing for supplies involving non-existent persons.
The penalty for making a false entry or an omitted entry under the Income Tax Act is an amount equal to the sum of such false or omitted entries. This applies to both the person making the false entry and anyone causing it.
Under GST, a false invoice is issued when goods or services are supplied without an invoice, an incorrect invoice is issued, an invoice is issued without any supply, or an invoice is issued using another person's registration number.
For issuing false invoices or invoices without supply, the penalty is Rs 10,000 or the amount of tax evaded, whichever is higher. Failure to issue an invoice or account for it can lead to a penalty of up to Rs 25,000.
Yes, a single false entry can attract penalties under both the Income Tax Act and the GST Act, potentially leading to significant financial consequences.
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