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Wrong SAC Code — Service Provider Turnover above 5Crore Slab

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OHGST

Entrepreneur

15 Points Posted on 29 September 2023

In an apartment maintenance services for Club Usage Charges (Gym and Swimming Pool), Primarily the service provider was not giving Invoices and was chargimg these services in backdate also depsite such services were never used and w/o any active service agreement. Failure to comply to their Unjust demands results in Tenants not allowed to enter the apartment, a sheer act of hooligansm. After making lot many Complaints they gave certain Invoices after lapse of 5 years, and out of 4 only one has correct SAC code and others have wrong ones?

Is this penalizable?

Invoice No.	HSN / SAC Code
Invoice 01	999723
Invoice 02	995419
Invoice 03	995419
Invoice 04	995419

Replies (6)

Quick Summary

This discussion addresses the issue of incorrect SAC codes being used on invoices by a service provider whose annual turnover exceeds £5 crore. The provider issued invoices with wrong SAC codes, even retrospectively and for services not rendered. The core question is whether this practice is penalizable under the CGST Act, and if so, what the penalties might be, with potential fines up to £25,000 per instance mentioned.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 08 October 2023

Invoice will not get updated.

OHGST

Entrepreneur

15 Points Posted on 08 October 2023

What aboutb Penalties for giving wrong SAC code, service provider is in above 5 crore slab, will he be penalized, If yes, How Much?

Suresh Kumar

Account

408 Points Posted on 08 October 2023

Penalty can be upto Rs. 25k u/s 122 (3)(e) of CGST Act for wrong SAC classification.

OHGST

Entrepreneur

15 Points Posted on 08 October 2023

Thanks Suresh, This blog says CGST + SGST combined penalty will be 50,000 →

If I am not wrong this is for every invoices having wromg SAC Code.

OHGST

Entrepreneur

15 Points Posted on 09 October 2023

Nill

OHGST

Entrepreneur

15 Points Posted on 09 October 2023

Originally posted by : sabyasachi mukherjee
	Invoice will not get updated.

What does this means? time of supply or taxable event is not established when Invoices have Incorrect SAC code? or they can't be considered to provide or etstabished time of supply otr taxable event? Is there any decicated section or Law for this under the GST Act?