GST Jamku AIPunishment for certain offences.
Section 132(1)
Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences, namely:—
(a) supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax;
(b) 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 leading to wrongful availment or utilisation of input tax credit or refund of tax;
(c) avails input tax credit using the invoice or bill referred to in clause * (b) or fraudulently avails input tax credit without any invoice or bill;
(d) 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;
(e) evades tax or fraudulently obtains refund and where such offence is not covered under clauses * (a) to * (d);
(f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act;
(g) [***]
(h) 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;
(i)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;
(j) [***]
(k) [***]
(l) attempts to commit, or abets the commission of any of the offences mentioned in [clauses (a) to (f) and clauses (h) and (i)] of this section, shall be punishable—
(i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine;
(ii) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for a term which may extend to three years and with fine;
(iii) in the case of [an offence specified in clause (b),] where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year and with fine;
(iv) in cases where he commits or abets the commission of an offence specified in clause (f) , he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both.
In the legal framework, Section 132(1) outlines the penalties for specific offenses related to the violation of taxation regulations. The section covers various actions that are considered illegal and subject to punishment.
Unlawful Supply of Goods or Services
The first set of offenses involve the unauthorized supply of goods or services without issuing the required invoice. This act is done with the intent to evade taxes and is a violation of the established laws and rules.
Improper Invoicing Leading to Wrongful Benefits
Another offense pertains to issuing invoices or bills without an actual supply of goods or services. This violation can lead to wrongful availment or utilization of input tax credit or tax refunds, contrary to the provisions outlined in the Act.
Fraudulent Practices in Availing Input Tax Credit
This offense involves the fraudulent availing of input tax credit, either by using false invoices or bills or by obtaining credit without any supporting documentation.
Failure to Remit Collected Taxes
If an individual collects taxes but fails to remit them to the government within three months of the due date, it constitutes a punishable offense.
Tax Evasion and Fraudulent Refund
Evading taxes or obtaining refunds through fraudulent means, not covered by previous clauses, is also considered an offense under this section.
Falsification of Financial Records
The falsification or substitution of financial records, production of fake accounts, or furnishing false information with the intention to evade tax payments is outlined as a punishable offense.
Possession or Dealing with Goods Liable for Confiscation
The section also addresses offenses related to acquiring, transporting, or dealing with goods known or believed to be liable for confiscation under the Act or its rules.
Involvement in Contravention of Act or Rules for Services
Being associated with the supply of services in contravention of the Act or rules is considered an offense under this section.
Attempted or Aided Offenses
The section concludes by stating that attempts to commit or abet any of the offenses mentioned earlier are punishable. The severity of the punishment depends on the amount involved in the offense.
Conclusion
In conclusion, Section 132(1) serves to enforce penalties for a range of offenses related to taxation, ensuring compliance with the Act and its associated rules. The magnitude of the punishment corresponds to the gravity of the offense, as outlined within the section.
Section 132(2)
Where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine.
Section 132(3)
The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, be for a term not less than six months.
Section 132(4)
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable.
In certain cases, when a person is convicted of an offence under Section 132(2), there are specific penalties outlined for subsequent convictions.
Section 132(2) - Repeat Offences
If an individual is convicted of an offence under Section 132 for the second time or any subsequent time, they may face imprisonment for up to five years and a fine.
Section 132(3) - Duration of Imprisonment
For the offences described in clauses (i), (ii), and (iii) of sub-section (1) and sub-section (2), the imprisonment term, unless there are special and adequate reasons noted in the court judgment, should not be less than six months.
Section 132(4) - Nature of Offences
Contrary to the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), all offences under this Act, excluding those mentioned in sub-section (5), are considered non-cognizable and bailable.
Additional Provisions
This section lays down the legal consequences for individuals convicted under Section 132. It establishes the penalties for repeated offences, specifies the minimum imprisonment duration, and defines the nature of these offences. The Code of Criminal Procedure further outlines the non-cognizable and bailable nature of most offences under this Act, except those mentioned in sub-section (5).
Section 132(5)
The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) and punishable under clause (i) of that sub-section shall be cognizable and non-bailable.
Section 132(6)
A person shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner.
Explanation.— For the purposes of this section, the term "tax" shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken under the provisions of this Act, the State Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act and cess levied under the Goods and Services Tax (Compensation to States) Act.
In certain cases, specific penalties are imposed under Section 132 of the law. This section addresses various offences, and we'll explore the key points related to sub-sections (5) and (6).
Section 132(5): Cognizable and Non-Bailable Offences
Certain offences falling under clauses (a), (b), (c), or (d) of sub-section (1) are considered serious. These offences, punishable under clause (i) of that sub-section, are both cognizable and non-bailable. This means that law enforcement can take immediate action upon becoming aware of these offences, and individuals committing such offences may not be granted bail easily.
Section 132(6): Prosecution with Commissioner's Sanction
Before prosecuting an individual for any offence under Section 132, prior approval from the Commissioner is necessary. This step ensures that legal action is taken judiciously and with careful consideration.
Explanation: Understanding the Scope of "Tax"
In the context of Section 132, the term "tax" encompasses various aspects. It includes not only the actual tax amount but also factors like the amount of tax evaded, incorrect utilization of input tax credit, or wrongly claimed refunds under the provisions of this Act. Additionally, it extends to cover cess levied under the Goods and Services Tax (Compensation to States) Act.
In summary, Section 132 provides a framework for addressing specific offences, making a clear distinction in the severity of these offences, and outlining the necessary steps for prosecution to ensure a fair and just legal process.