Traders receive GST Show Cause Notices for Issuance of Improper/False/Fake Invoices

GST - Show Cause Notice - Improper Invoice - Fake Invoice - Mera Bill Mera Adhikar Scheme - Traders - Invoice issuance - TAXSCAN

Traders have received Goods and Services Tax (GST) Show Cause Notices (SCNs) from the Goods and Services Tax Department for issuance of improper, fake or false invoices, from the data collected from Mera Bill Mera Adhikar Scheme.

The CBIC had initiated the Mera Bill Mera Adhikaar (MBMA) scheme to instill a culture of generating bills and invoices during sales and purchase transactions. To enhance awareness about this initiative, a campaign supporting the MBMA scheme is currently in progress. In collaboration with its application partner, M/s e-connect Solutions Pvt. Ltd., GSTN is developing a technological platform

Officers are conducting onsite visits to various entities and shops, making purchases to scrutinize issued invoices. In cases where invoices are identified as fake or incorrect, the officers issue notices

What information is encompassed in the Violation of Section 122(1)(i) of CGST Act, 2017?

The Show Cause Notice under Section 122(1)(i) of the CGST Act, 2017, asserts that you, as a registered entity, have breached Section 31.


The accusation involves the issuance of improper tax invoices in violation of GST laws. Specifically, incorrect or false invoices were issued without the proper assessment or payment of applicable taxes.

Violation Details

Examination of invoices on the “Mera Bill App” portal uncovered inconsistencies in the issued invoices.

Penalty Imposed

The notices indicate a penalty of Rs. 10,000 for both SGST and CGST, amounting to Rs. 20,000.

Required Action

Provide a response to this notice, elucidating the reasons for non-compliance and the issuance of inaccurate invoices.

Clarification or evidence is necessary to substantiate actions, thereby preventing or lessening the imposed penalties.

Enclosed below is the show case notice received by a person from the GST department.


(See Section 122(1) (i) of CGST Act 2017)

As per the section 31 of CGST Act, 2017, a registered person supplying taxable goods shall, before or at the time of supply of goods shall issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed.

As per the section 122 (1) (i) of the CGST Act, 2017, where a taxable person who supplies any goods and services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply; he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded whichever is higher.

During scrutiny of the bills uploaded by the purchaser on “Mera Bill App” portal which was issued by you the following discrepancies have been found :

You have sold taxable goods under GST Act 2017 but has not issued a proper invoice as per GST law, rather you have issued incorrect/ false invoices (copies of which are enclosed) without charging and payment of tax. Hence, it is clearly established that you have wilfully violated the provision of section 31 of CGST Act, 2017 and thereby committed an offence punishable under section 122 (1) (i) of the CGST Act, 2017.

Therefore you are liable to pay penalty determine as under :

Penalty under SGST Rs. 10,000/-
Penalty under CGST Rs. 10,000/-
Total Rs. 20,000/-

If have any objection on the above said penalty, you may file your written submission, if any through mail or appearing in person to the office of the undersigned situated at _________________________ one week without fail, in case of non compliance appropriate order shall be passed without giving any further opportunity.

State Tax, Officer

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