GST Penalty & Statutory Demand Calculator
Compute statutory penalties under Section 73 (Non-Fraud), Section 74 (Fraud), Section 122 (Invoicing), and Section 129 (Transit Seizure).
Offence Type & Tax Value
Statutory Liability Section 73
Note: Section 50 interest at 18% p.a. on the net cash tax liability applies in addition to the penalty from the due date until the date of payment.
GST Penal Provisions: Section 73, 74, 122 & 129
The GST law enforces strict statutory penalties for short-payment, non-payment, erroneous refunds, or fraudulent ITC claims. The penalty severity varies fundamentally based on bona-fide error versus fraud / wilful suppression.
Section 73 (Non-Fraud Cases)
Before SCN: 0% Penalty if tax + 18% interest is paid voluntarily.
Within 30 days of SCN: 0% Penalty (proceedings concluded).
Post Order: 10% of tax or ₹10,000, whichever is higher.
Section 74 (Fraud / Suppression)
Before SCN: 15% of tax penalty + interest.
Within 30 days of SCN: 25% of tax penalty + interest.
Within 30 days of Order: 50% of tax penalty.
After 30 days of Order: 100% of tax penalty (Min ₹10,000).
GST Section 129 Detention & Seizure Penalty Rates
| Scenario | Taxable Goods | Exempted Goods |
|---|---|---|
| Owner comes forward | 200% of the tax payable | 2% of value of goods or ₹25,000, whichever is less |
| Owner does NOT come forward | Higher of 50% of goods value OR 200% of tax | 5% of value of goods or ₹25,000, whichever is less |
Frequently Asked Questions
What is the penalty for fake invoices?
Under Section 122(1)(ii), the penalty is 100% of the tax evaded or ₹10,000, whichever is higher, along with potential arrest under Section 132 if the tax amount exceeds ₹200 Lakhs.
Can penalties be waived under GST?
For non-fraud cases under Section 73, penalties are 100% waived if the taxpayer deposits the short-paid tax along with applicable Section 50 interest before the issuance of SCN or within 30 days of SCN.
What is the general penalty?
Under Section 125 (General Penalty), any person who contravenes any provision of the GST Act for which no specific penalty is provided is liable to a penalty up to ₹25,000 CGST + ₹25,000 SGST = ₹50,000 total.