DEMAND AND PENALTY FOR ITC RELATED VIOLATION

1. Demand notice under Section 73 or 74 of CGST Act, 2017 as the case may be will be issued
2. Penalty equal to amount of ITC availed wrongly will be imposable under aforesaid provisions
3. A person supplying invoice without supplying goods, thus enabling recipient to take credit is also liable to a penalty equal to amount of ITC involved or Rs. 10000/- which ever is higher.
4. Prosecution can be launched and the offender is liable for fine. Imprisonment may range from one year to five years depending upon amount of ITC involved