Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 132, verbatim (show)
Section 132
*Section 132. Punishment for certain offences.-
(1) 1[Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences], namely:-
(a) supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax;
(b) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax;
(c) 2[avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input tax credit without any invoice or bill;]
(d) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due;
(e) evades tax 3[****]or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d);
(f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act;
(g) 4[****];
(h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder;
(i) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder;
(j) 5[****];
(k) 6[****]; or
(l) attempts to commit, or abets the commission of any of the offences mentioned in 7[clauses (a) to (f) and clauses (h) and (i)] of this section,
shall be punishable-
(i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine;
(ii) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for a term which may extend to three years and with fine;
(iii) in the case of 8[an offence specified in clause (b),] where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year and with fine;
(iv) in cases where he commits or abets the commission of an offence specified in clause (f) 9[****], he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both.
(2) Where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine.
(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, be for a term not less than six months.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non- cognizable and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) and punishable under clause (i) of that sub-section shall be cognizable and non-bailable.
(6) A person shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner.
Explanation.- For the purposes of this section, the term " tax" shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken under the provisions of this Act, the State Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act and cess levied under the Goods and Services Tax (Compensation to States) Act.
* Enforced w.e.f . 1st July, 2017 .
1. Substituted vide Notification No. 92/2020-C.T., dated 22-12-2020 for " Whoever commits any of the following offences " by s.127 of the Finance Act, 2020 (No. 12 of 2020) - Brought into force w.e.f. 01st January, 2021.
2. Substituted vide Notification No. 92/2020-C.T., dated 22-12-2020 for " (c) avails input tax credit using such invoice or bill referred to in clause (b); " by s.127 of The Finance Act, 2020 (No. 12 of 2020) - Brought into force w.e.f. 01st January, 2021.
3. Omitted vide Notification No. 92/2020-C.T., dated 22-12-2020 " , fraudulently avails input tax credit " by s.127 of The Finance Act, 2020 (No. 12 of 2020) - Brought into force w.e.f. 01st January, 2021.
4. Omitted (w.e.f. 1st October, 2023 vide Notification No. 28/2023 - CT dated 31st july, 2023.) by s. 156 of The Finance Act 2023 (No. 8 of 2023).
5. Omitted (w.e.f. 1st October, 2023 vide Notification No. 28/2023 - CT dated 31st july, 2023.) by s. 156 of The Finance Act 2023 (No. 8 of 2023).
6. Omitted (w.e.f. 1st October, 2023 vide Notification No. 28/2023 - CT dated 31st july, 2023.) by s. 156 of The Finance Act 2023 (No. 8 of 2023).
7. Substituted (w.e.f. 1st October, 2023 vide Notification No. 28/2023 - CT dated 31st july, 2023.) by s. 156 of The Finance Act 2023 (No. 8 of 2023).
8. Substituted (w.e.f. 1st October, 2023 vide Notification No. 28/2023 - CT dated 31st july, 2023.) by s. 156 of The Finance Act 2023 (No. 8 of 2023).
9. Omitted (w.e.f. 1st October, 2023 vide Notification No. 28/2023 - CT dated 31st july, 2023.) by s. 156 of The Finance Act 2023 (No. 8 of 2023).
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file4 questions
The person reached by the opening words, and the clause 132(1) opening words and clauses (a) to (l)
Questions to answer on the file4 questions
A supply without an invoice, and an invoice without a supply 132(1)(a) and (b)
Questions to answer on the file6 questions
Input tax credit availed on such an invoice, or without any invoice 132(1)(c)
Questions to answer on the file3 questions
An amount collected as tax and not paid to the Government 132(1)(d)
Questions to answer on the file2 questions
Evasion of tax, and a refund fraudulently obtained 132(1)(e)
Questions to answer on the file4 questions
Falsified records and false information 132(1)(f)
Questions to answer on the file2 questions
Dealing with goods liable to confiscation, and with supplies of services in contravention 132(1)(h) and (i)
Questions to answer on the file4 questions
An attempt to commit an offence, and abetment 132(1)(l)
Questions to answer on the file4 questions
The amount and the bands in clauses (i) to (iii), and the meaning of tax 132(1)(i), (ii) and (iii) and the Explanation
Questions to answer on the file8 questions
The punishment for an offence specified in clause (f) 132(1)(iv)
Questions to answer on the file3 questions
A second or subsequent conviction 132(2)
Questions to answer on the file5 questions
The minimum term of imprisonment 132(3)
Questions to answer on the file3 questions
Cognizable and bailable, or not 132(4) and (5)
Questions to answer on the file3 questions
The previous sanction of the Commissioner 132(6)
Questions to answer on the file3 questions
Amendment history
The CBIC text carries 10 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| Enforced the section | — | 1st July, 2017 | |
| 1 | Substituted the opening words of sub-section (1) for "Whoever commits any of the following offences" | s.127 of the Finance Act, 2020 (No. 12 of 2020)[2] | 1st January, 2021 |
| 2 | Substituted clause (c) for "(c) avails input tax credit using such invoice or bill referred to in clause (b);" | s.127 of The Finance Act, 2020 (No. 12 of 2020)[2] | 1st January, 2021 |
| 3 | Omitted the words ", fraudulently avails input tax credit" from clause (e). The source serves the remainder as evades tax 3[]or fraudulently obtains refund | s.127 of The Finance Act, 2020 (No. 12 of 2020)[2] | 1st January, 2021 |
| 4 | Omitted clause (g). The source preserves only the fact of the omission, shown as 4[], and not the words omitted | s. 156 of The Finance Act 2023 (No. 8 of 2023)[3] | 1st October, 2023 |
| 5 | Omitted clause (j), shown as 5[]; the words omitted are not preserved | s. 156 of The Finance Act 2023 (No. 8 of 2023)[3] | 1st October, 2023 |
| 6 | Omitted clause (k), shown as 6[]; the words omitted are not preserved | s. 156 of The Finance Act 2023 (No. 8 of 2023)[3] | 1st October, 2023 |
| 7 | Substituted the list of offences clause (l) reaches, now "clauses (a) to (f) and clauses (h) and (i)" | s. 156 of The Finance Act 2023 (No. 8 of 2023)[3] | 1st October, 2023 |
| 8 | Substituted the opening of clause (iii), which now confines that clause to "an offence specified in clause (b)," | s. 156 of The Finance Act 2023 (No. 8 of 2023)[3] | 1st October, 2023 |
| 9 | Omitted words after "clause (f)" in clause (iv), shown as 9[]; the words omitted are not preserved | s. 156 of The Finance Act 2023 (No. 8 of 2023)[3] | 1st October, 2023 |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 2 | 132(6) defined by Section 2 clause (24) | 132(6) "except with the previous sanction of the Commissioner" |
| Section 130 | 132(1)(h) requires Section 130 | 132(1)(h) "are liable to confiscation under this Act or the rules made thereunder" |
| Section 69 | Section 69 requires this provision | 69(1) "any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (1)
| Number | Date | Subject |
|---|---|---|
| Circular No. 171/03/2022-GST | 6 July 2022 | Clarification on various issues relating to applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 in respect of transactions involving fake invoices. |
Notifications (1)
| Number | Date | Subject |
|---|---|---|
| Notification No. 38/2023-Central Tax | 4 August 2023 | Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017. |
Unsettled questions
The words of section 132 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- Where more than one of the amounts clauses (i) to (iii) name — the tax evaded, the input tax credit wrongly availed or utilised, the refund wrongly taken — arises out of the same offence, are they added together to make the amount those clauses operate on, or is each tested against the bands on its own? The clauses write the three in the alternative and say nothing about the case.
- Where the amount exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees and the offence is not one specified in clause (b), does sub-section (1) provide any punishment at all? Clause (iii) is confined to clause (b) by the substitution footnote 8 made, clauses (i) and (ii) begin above two hundred lakh rupees, and no clause reaches the case.
- Does clause (iv) displace clauses (i) to (iii) for an offence specified in clause (f) whose amount exceeds one hundred lakh rupees, or do the bands apply to it as they do to any other offence? Clause (iv) fixes no amount and clauses (i) and (ii) are confined to no clause of sub-section (1).
- Does sub-section (2) reach a later conviction for an offence committed before the earlier conviction, or only one for an offence committed after it? The sub-section fixes no order between the earlier conviction and the later offence.
See also
- Section 69 of the CGST Act, 2017: power to arrest
- Section 134 of the CGST Act, 2017: cognizance of offences
- Section 138 of the CGST Act, 2017: compounding of offences
References
- Central Board of Indirect Taxes and Customs. "Section 132. Punishment for certain offences". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 10. Retrieved 17 September 2026.
- The Finance Act, 2020. Cited in CBIC footnotes 1, 2 and 3.
- The Finance Act, 2023. Cited in CBIC footnotes 4, 5, 6, 7, 8 and 9.
External links
- CGST Act, 2017, Section 132 on the CBIC tax information portal