Entire supply chain not to be penalised for fake invoices: CBIC

All entities in the entire supply chain will not be penalised as part of action taken on fake invoices, Central Board of Indirect Taxes and Customs(CBIC) has clarified.

In a detailed clarification, CBIC on Friday said the recipient of goods or services should not be penalised under different provisions of the GST law for the same offence. It also clarified that not all person in the supply chain will be made to pay penalty. This will ensure officials do not go beyond the scope of law.

As per the council's decision based on law committee's proposal, the person who's generating the fake bill will not be liable to pay any tax as there is no underlying supply of goods or service, CBIC chairman Vivek Johri told ET.