UNDERSTANDING SECTION 122 OF CGST ACT GST compliance involves more than just filing returns; it begins with correct GST registration and continues with appropriate reporting. WHAT IS SECTION 122? Section 122 Its main purpose is to: Prevent tax evasion Ensure proper invoicing Promote compliance It covers multiple violations such as fake invoicing, ITC misuse, and non-payment of GST. Section 122 of the CGST Act deals with penalties for specific GST offences. KEY OFFENCES UNDER SECTION 122 Offences Some common offences include: After getting GST Registration, businesses must avoid: Issuing invoices without actual supply Claiming fake Input Tax Credit (ITC) Not paying collected GST to the government Supplying goods without proper invoices Transporting goods without valid documents PENALTY STRUCTURE EXPLAINED General Rule ₹ 10,000 OR tax amount (whichever is higher) Companies go public to raise large amounts of money for expansion, research, or reducing debt. Access to Capital Penalties depend on the nature of the offence: Non-Fraud Cases 10% of tax due (minimum ₹ 10,000) Fraud Cases 100% of tax evaded SUB- SECTIONS Sub-sections of Section 122 of CGST Act Offences by Taxable Persons Section 122(1) Penalty on Beneficiaries Section 122(1A) E-commerce Operators Section 122(1B) Short Payment/Wrongful ITC Section 122(2) Aiding or Abetting Section 122(3) www.onlinelegalindia.com HOW TO AVOID PENALTIES GST compliance is not optional. It’s essential for business growth. Need help with GST compliance? Get expert support to avoid penalties and stay stress-free. To stay compliant: Always issue correct invoices File GST returns on time Maintain proper records Avoid fake or incorrect ITC claims Seek professional guidance