CA Ruby Bansal
The officers are conducting on-site visits to entities and shops to purchase products and inspect the issued invoices. If the invoices are fake or incorrect, they issue notices under section 122 (1) (i) of the CGST Act, 2017.
What are the details contained in Violation of Section 122(1)(i) of CGST Act, 2017
The Show Cause Notice under section 122(1)(i) of the CGST Act, 2017, alleging that you, as a registered person, have violated section 31.
Allegations
Issue of improper tax invoices as per GST law. Instead, incorrect or false invoices were issued without charging or paying the appropriate tax.
Details of Violations
Scrutiny of bills on "Mera Bill App" portal revealed discrepancies in the invoices issued.
Penalty Imposed
The notices specify a penalty of Rs. 10,000 for each - SGST and CGST, totaling Rs. 20,000.
Action Required
Respond to this notice, explaining the reasons for non-compliance and issuance of incorrect invoices.
Clarification or evidence required to justify actions and avoid or mitigate the imposed penalties.
Enclosed below is the show case notice received by a person from the GST department.
SHOW CAUSE NOTICE(See Section 122(1) (i) of CGST Act 2017) As per the section 31 of CGST Act, 2017, a registered person supplying taxable goods shall, before or at the time of supply of goods shall issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed. As per the section 122 (1) (i) of the CGST Act, 2017, where a taxable person who supplies any goods and services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply; he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded whichever is higher. During scrutiny of the bills uploaded by the purchaser on "Mera Bill App" portal which was issued by you the following discrepancies have been found : You have sold taxable goods under GST Act 2017 but has not issued a proper invoice as per GST law, rather you have issued incorrect/ false invoices (copies of which are enclosed) without charging and payment of tax. Hence, it is clearly established that you have wilfully violated the provision of section 31 of CGST Act, 2017 and thereby committed an offence punishable under section 122 (1) (i) of the CGST Act, 2017. Therefore you are liable to pay penalty determine as under : Penalty under SGST Rs. 10,000/- If have any objection on the above said penalty, you may file your written submission, if any through mail or appearing in person to the office of the undersigned situated at _________________________ one week without fail, in case of non compliance appropriate order shall be passed without giving any further opportunity. State Tax, Officer |
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