Mr. Dinesh, an unregistered person is selling its products through Buykart, a registered e-commerce operator. On the basis of inspection by the GST…
CA Final · Indirect Tax Laws · MTP · November 2026
Mr. Dinesh, an unregistered person is selling its products through Buykart, a registered e-commerce operator. On the basis of inspection by the GST authorities at the premises of Mr. Dinesh, proper officer of GST determined that he has made intra-state sale of goods valued ₹12,00,000 and inter-State sale of goods valued ₹3,00,000 through Buykart. Proper officer under CGST Act, 2017 issued summon to Mr. Ravi who is CFO of Buykart to appear before him and to tender/record the statement, but Mr. Ravi failed to appear before the proper officer on scheduled date. GST rate applicable to such goods is CGST 9%, SGST 9% and IGST 18%. Determine total amount of penalty, if any, which may be levied on Mr. Dinesh and Mr. Ravi as per the provisions of the CGST Act, 2017.
Suggested Answer and Working Notes:
(i) Penalty leviable on Mr. Dinesh Mr. Dinesh is liable to a penalty, for intra-State supply: Higher of: (a) ₹10,000 or (b) Amount equivalent to the tax evaded Thus, amount of penalty in the given case is [9% of ₹12,00,000] = ₹1,08,000 each under CGST and SGST for inter-State supply: Higher of: ₹20,000 or Amount equivalent to the tax evaded Thus, amount of penalty in the given case is [18% of ₹3,00,000] = ₹54,000 IGST Total penalty leviable on Mr. Dinesh is ₹2,70,000 (1,08,000 +1,08,000 + 54,000) (ii) Penalty leviable on Mr. Ravi Since Mr. Ravi (CFO of Buykart) failed to appear before the proper officer, penalty up to ₹25,000 each under CGST and SGST or up to ₹50,000 under IGST is leviable.
Topics: Offences and Penalties and Ethical Aspects under GST
Related Questions in this Topic
- Mr. Rajaram issued a tax invoice to Mr. Balram without any actual supply of goods or services involving total Input Tax ...
- Examine the implications as regards the bailability and quantum of punishment on prosecution, in respect of the followin...
- 'Documents include written or printed record of any sort and electronic record as defined in the Information Technology ...
- Mr. Dinesh, an unregistered person is selling its products through Buykart, a registered e-commerce operator. On the bas...
- Mr. Cummins, an unregistered person under GST, purchases the goods supplied by Mr. Marsh who is a registered person with...