Penalty for wrong issuance of invoice under GST – Penalty for raising incorrect invoices under GST

1.0 Introduction

Issuing the correct invoice in consonance with the GST rules is the most important thing in GST. This is because everything under GST like return filing, the tax payment is dependent upon invoices. If the invoices are not issued correctly then there are no chances of other steps being correct.

Further, if you don’t raise an invoice properly then a penalty of Rs.25,000 may also be levied upon you in terms of section 122 sub section (3).Let us discuss the penalties in detail.

Important: Raise GST compliant invoices – Use Free GST Software

 

2.0 Penalty for issuing wrong GST invoice or no GST compliant invoice

If the invoices are not raised in terms of GST rules, then the registered person shall be liable to pay the penalty of Rs.25,000/-. Further, if the invoice is raised but the same is not entered in books of account, then also the penalty of Rs.25,000 shall be levied.

3.0 When can the penalty be levied?

There can be various cases where this penalty can be invoked few of them are as follows:

• Proper details like GSTIN number, address not mentioned
• Proper invoice serial number not followed.
• Tax amount not shown separately.
• Export invoice not raised properly.

Further, there can be n number of cases but in crux they are confined to the GST invoicing rules.

4.0 Can other penalties for short tax payment be levied?

If there is any mistake in the invoice due to which it results in additional tax payment and the SCN has been issued to the taxpayer, in that case the provisions of section 74 shall apply and penalty shall be applicable.

As said, correct invoicing is the base for all GST filing and compliances; therefore it is important that you should raise invoice through GST compliant software.

5.0 Conclusion

Start raising GST compliant invoices for your business. Further, in case of any query, please email us at info@hubco.in.

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