Kamal, a taxable person issued a tax invoice on 20th May, 2023 involving input tax credit (ITC) of ₹ 15 lakhs to Mahendra, a registered person, who, being eligible, utilised the same in payment of his output tax liabilit

Where a taxable person: (a) issues any tax invoice without supply of goods, or (b) takes / utilises ITC without actual receipt of goods, either fully or partially, in contravention/ violation of the provisions of the GST law or the rules made thereunder, such person shall be liable to pay a penalty of ₹ 10,000 Or an amount equivalent to the ITC availed of or passed on i.e., ₹ 15 lakh whichever is higher. Thus, Kamal (supplier) and Mahendra (recipient), both are liable to pay a penalty of ₹ 15 lakh each. Further, any person at whose instance the above transaction was conducted, shall be liable to a penalty of an amount equivalent to ITC availed of/passed on. Thus, the tax consultant will also be liable to pay a penalty of ₹ 15 lakh.