Section 122 - Penalty for certain offences of CGST ACT, 2017

                122. (1) Where a taxable person who––
                           (i) supplies any goods or services or both without issue of any invoice or issues
an incorrect or false invoice with regard to any such supply;
                           (ii) issues any invoice or bill without supply of goods or services or both in
violation of the provisions of this Act or the rules made thereunder;
                           (iii) collects any amount as tax but fails to pay the same to the Government
beyond a period of three months from the date on which such payment becomes due;
                           (iv) collects any tax in contravention of the provisions of this Act but fails to pay
the same to the Government beyond a period of three months from the date on which
such payment becomes due;
                          (v) fails to deduct the tax in accordance with the provisions of sub-section (1) of
section 51, or deducts an amount which is less than the amount required to be deducted
under the said sub-section, or where he fails to pay to the Government under
sub-section (2) thereof, the amount deducted as tax;
                       (vi) fails to collect tax in accordance with the provisions of sub-section (1) of
section 52, or collects an amount which is less than the amount required to be collected
under the said sub-section or where he fails to pay to the Government the amount
collected as tax under sub-section (3) of section 52;
                   (vii) takes or utilises input tax credit without actual receipt of goods or services
or both either fully or partially, in contravention of the provisions of this Act or the
rules made thereunder;
                  (viii) fraudulently obtains refund of tax under this Act;
                     (ix) takes or distributes input tax credit in contravention of section 20, or the
rules made thereunder;
                   (x) falsifies or substitutes financial records or produces fake accounts or
documents or furnishes any false information or return with an intention to evade
payment of tax due under this Act;

                   (xi) is liable to be registered under this Act but fails to obtain registration;
                   (xii) furnishes any false information with regard to registration particulars, either
at the time of applying for registration, or subsequently;
                   (xiii) obstructs or prevents any officer in discharge of his duties under this Act;
                  (xiv) transports any taxable goods without the cover of documents as may be
specified in this behalf;
                  (xv) suppresses his turnover leading to evasion of tax under this Act;
                  (xvi) fails to keep, maintain or retain books of account and other documents in
accordance with the provisions of this Act or the rules made thereunder;
                 (xvii) fails to furnish information or documents called for by an officer in
accordance with the provisions of this Act or the rules made thereunder or furnishes
false information or documents during any proceedings under this Act;
                 (xviii) supplies, transports or stores any goods which he has reasons to believe
are liable to confiscation under this Act;
                (xix) issues any invoice or document by using the registration number of another
registered person;
               (xx) tampers with, or destroys any material evidence or document;
               (xxi) disposes off or tampers with any goods that have been detained, seized, or
attached under this Act,
he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax
evaded or the tax not deducted under section 51 or short deducted or deducted but not paid
to the Government or tax not collected under section 52 or short collected or collected but
not paid to the Government or input tax credit availed of or passed on or distributed irregularly,
or the refund claimed fraudulently, whichever is higher.
         (2) Any registered person who supplies any goods or services or both on which any
tax has not been paid or short-paid or erroneously refunded, or where the input tax credit has
been wrongly availed or utilised,—
                (a) for any reason, other than the reason of fraud or any wilful misstatement or
suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or
ten per cent. of the tax due from such person, whichever is higher;
               (b) for reason of fraud or any wilful misstatement or suppression of facts to
evade tax, shall be liable to a penalty equal to ten thousand rupees or the tax due from
such person, whichever is higher.
         (3) Any person who––
              (a) aids or abets any of the offences specified in clauses (i) to (xxi) of
sub-section (1);
              (b) acquires possession of, or in any way concerns himself in transporting,
removing, depositing, keeping, concealing, supplying, or purchasing or in any other
manner deals with any goods which he knows or has reasons to believe are liable to
confiscation under this Act or the rules made thereunder;
              (c) receives or is in any way concerned with the supply of, or in any other
manner deals with any supply of services which he knows or has reasons to believe
are in contravention of any provisions of this Act or the rules made thereunder;
              (d) fails to appear before the officer of central tax, when issued with a summon
for appearance to give evidence or produce a document in an inquiry;

             (e) fails to issue invoice in accordance with the provisions of this Act or the rules
made thereunder or fails to account for an invoice in his books of account,
shall be liable to a penalty which may extend to twenty-five thousand rupees.