Mr. X, a registered person under GST, issued invoice without actual supply of goods for taxable value amounting to 20 crore. Central GST authority…

(a) (i) Since issuance of tax invoice without the underlying supply does not qualify as "supply” under GST, no tax liability would arise against Mr. X. Thus, tax is NOT required to be demanded from Mr. X. (ii) In the given case, the offence is non-cognizable since the amount of tax evaded or ITC availed/utilised wrongly, or the refund claimed fraudulently, does not exceed 500lakh. (iii) 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 200lakh but does not exceed 500lakh, with imprisonment for a term which may extend to 3 years and with fine. In the given case, the amount involved is 3.6 crore (together under CGST and SGST). So, the quantum of punishment will be 3 years and fine. (iv) Penalty is higher of the following amounts: (a) ₹ 10,000 (under CGST/SGST) or (b) 100% of tax evaded or ITC availed of or passed on/distributed irregularly, or the refund claimed fraudulently. So, in the given case, penalty would be - 3.60 crore (₹ 1.80 crore under CGST and - 1.80 crore under SGST) (v) The amount of penalty leviable on a person, who aids or abets the above offence would be - 25,000 each under CGST and SGST. So, in the given case, the total amount of penalty would be - 50,000 (₹ 25,000 under CGST +25,000 under SGST).