Home GST GST Show Cause Notices sent to Traders for Fake Invoices

GST Show Cause Notices sent to Traders for Fake Invoices

GST Show Cause Notices sent to Traders for Fake Invoices

GST Present Trigger Notices despatched to Merchants for Pretend Invoices

Merchants have acquired Items and Providers Tax (GST) Present Trigger Notices (SCNs) from the Items and Providers Tax Division for issuing faulty, pretend, or fraudulent invoices primarily based on knowledge obtained by means of the Mera Invoice Mera Adhikar Scheme.

The CBIC launched the Mera Invoice Mera Adhikaar (MBMA) scheme to advertise the technology of payments and invoices throughout transactions of sale or buy. A marketing campaign in assist of the MBMA plan is presently underway to boost consciousness about this effort.

GSTN is constructing a technical platform in partnership with its software companion, M/s e-connect Options Pvt. Ltd.

Officers are making purchases at totally different companies and retailers to scrutinize issued invoices. Officers ship notices when invoices are discovered to be false or faulty.

In keeping with the Present Trigger Discover issued underneath Part 122(1)(i) of the CGST Act, 2017, you, as a registered entity, have violated Part 31.

The cost entails the problem of incorrect tax invoices in violation of GST legal guidelines. Particularly, improper or pretend invoices had been offered with out the required evaluation or cost of relevant taxes.

Inspecting invoices on the “Mera Invoice App” portal revealed irregularities within the issued invoices.

The notices indicate a penalty of Rs. 10,000 for each SGST and CGST, totaling Rs. 20,000.

Reply to this discover by explaining the explanations for non-compliance and the issuance of incorrect invoices.

Clarification or proof is required to substantiate strikes, stopping or decreasing penalties.

The present trigger discover acquired by a person from the GST division is enclosed.

In keeping with Part 31 of the CGST Act of 2017, a registered particular person supplying taxable items shall submit a tax bill specifying the outline, amount, and worth of products, the tax charged thereon, and such different particulars as could also be specified.

In keeping with Part 122 (1) (i) of the CGST Act, 2017, a taxable one that provides any items and providers or each with out issuing an bill or points an incorrect or false bill about any such provide shall be liable to pay a penalty of Rs. 10,000 or an quantity equal to the tax evaded, whichever is larger.

Throughout a evaluation of the payments submitted by the purchaser on the “Mera Invoice App” portal that was issued, the next irregularities had been found:

Taxable items underneath the GST Act 2017 however didn’t present a professional bill underneath GST guidelines, as a substitute issuing incorrect/ pretend invoices (copies enclosed) with out charging and paying tax. Because of this, it’s apparent that you simply willfully violated Part 31 of the CGST Act, 2017 and so dedicated an offence punishable underneath Part 122 (1) (i) of the CGST Act, 2017.

Liable to Pay as Beneath:

Penalty of Rs. 10,000 underneath SGST

Penalty of Rs. 10,000 underneath CGST

Complete: Rs. 20,000

If in case you have any objections to the above-mentioned penalty, you might ship your written submission, if any, by way of mail or in particular person to the undersigned’s workplace inside one week with out fail; within the occasion of non-compliance, an applicable order will likely be issued with out additional discover.


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