Penalties Section 122(1) CGST — General Penalty for Specified Offences
Section 122(1) CGST — General Penalty for Specified Offences
CGST Act 2017 — 122(1)
The Penalty
₹10,000 or amount of tax involved, whichever is higher
- Cap
- None stated; per-offence penalty
- Calculation base
- Amount of tax involved / evaded / erroneously refunded / wrongly-availed ITC
- Period
- Per offence; multiple offences carry cumulative penalties.
When does this apply?
Any of the 21 offences in s.122(1) — supply without invoice, issuing invoice without supply, failure to file returns, wrong ITC availment, failure to deduct/collect TDS/TCS, etc.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| ITC of ₹8,00,000 wrongly availed | Higher of ₹10,000 and ₹8,00,000 | ₹8,00,000 |
| Failure to register (nil tax involved) | Higher of ₹10,000 and ₹0 | ₹10,000 |
How it is levied
Adjudicating officer issues show-cause and passes penalty order. Distinct from tax demand under s.73/s.74. Reduced penalty regime applies where the offence attracts s.73 / s.74 demand.
Confirm which specific sub-clause of s.122(1) applies — the drafting matters, since some sub-clauses have specific quantum rules (e.g. transporter penalties in s.122(1A)).