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The dealer registration certificate is cancelled.But the dealer makes sales.

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The dealer registration certificate is cancelled.But the dealer makes sales . Please clarify the gst penalty.
Replies (2)

If a dealer's registration certificate is cancelled, but they continue to make sales, they'll be liable for penalties under the Goods and Services Tax (GST) law.

GST Penalty As per Section 122(1)(a) of the Central Goods and Services Tax Act, 2017 (CGST Act): - A penalty of ₹10,000 or an amount equivalent to the tax evaded or the tax not deducted or short-deducted or deducted but not paid, whichever is higher, will be imposed.

Additionally, as per Section 122(1)(d) of the CGST Act: - A penalty of ₹20,000 or an amount equivalent to the tax evaded or the tax not deducted or short-deducted or deducted but not paid, whichever is higher, will be imposed for continuing to operate without a valid registration.

Total Penalty Since the dealer is making sales without a valid registration, the total penalty would be: ₹10,000 (Section 122(1)(a)) + ₹20,000 (Section 122(1)(d)) = ₹30,000 Or an amount equivalent to the tax evaded or the tax not deducted or short-deducted or deducted but not paid, whichever is higher.

SGST Penalty Similar penalties will be applicable under the State Goods and Services Tax (SGST) Act.

The total penalty under SGST would also be ₹30,000.

Total GST Penalty (CGST + SGST) The total GST penalty would be: ₹30,000 (CGST) + ₹30,000 (SGST) = ₹60,000 Or an amount equivalent to the tax evaded or the tax not deducted or short-deducted or deducted but not paid, whichever is higher.

Please note that these penalties are subject to change, and it's essential to consult the relevant tax laws and regulations for the most up-to-date information.

Thank you.


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