Section 122 introduces penalties for various GST-related offenses committed by taxable individuals, in a significant step to ensure compliance and deter unlawful acts.

Taxable individuals may incur penalties for several transgressions under Section 122 of the GST Act:

• Supplying goods/services without invoicing or providing false supply details.
• Issuing invoices/bills without actual supply, breaching Act provisions.
• Collecting tax from customers but failing to remit it to the government within three months.
• Collecting tax against Act regulations without paying it to the government within three months.
• Failing to deduct the required tax as per section 51 or inadequately doing so, or not remitting deducted tax to the government.
• Failing to collect, inadequately collecting, or not remitting required tax as per section 52.
• Illegitimately claiming input tax credit without actually receiving goods/services as specified.
• Fraudulently securing a tax refund.
• Misusing input tax credit against section 20 or the rules.
• Forging financial records or producing fraudulent accounts/documents to evade taxes.
• Failing to register under the Act despite being eligible.
• Providing false registration details during or after the application process.
• Obstructing any officer in executing duties under the Act.
• Transporting taxable goods without requisite documentation.
• Underreporting turnover to evade tax.
• Failing to maintain required books of accounts/documents as per the Act/rules.
• Failing to provide requested information/documents or providing false data during proceedings.
• Supplying, transporting, or storing goods liable for confiscation under the Act.
• Issuing invoices using another registered person's number.
• Destroying or tampering with material evidence/documents.
• Messing with goods detained, seized, or attached under the Act.

Penalties for these offenses can be either ten thousand rupees or an amount equal to the tax evaded or mishandled, whichever is higher.

Individuals benefiting from transactions under certain subsections may face penalties equivalent to the tax evaded or improperly acquired input tax credit.

Further penalties apply to registered persons supplying goods/services on which tax remains unpaid/short-paid due to non-fraudulent reasons, amounting to ten thousand rupees or ten percent of the tax due. In cases involving fraud or intentional misstatement to evade tax, the penalty will be ten thousand rupees or equivalent to the tax due, whichever is higher.

Additionally, those aiding offenses, dealing with potentially confiscated goods, or failing to appear before a central tax officer, may face fines up to twenty-five thousand rupees.

This government initiative strengthens tax compliance and mitigates unlawful activities within the GST structure.