Punjab Sales Tax Penalties: Different Defaults and Taxpayer Categories

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A penalty amount cannot be selected from the taxpayer's legal form alone. It must first be matched to the specific default in section 48(2).

Revised entry 5

For the default covered by serial 5, the replacement specifies up to Rs. 100,000 for an individual's first default and Rs. 100,000 for each subsequent default. For a company or association of persons it specifies up to Rs. 500,000 for the first default and Rs. 500,000 for each subsequent default. The first-default “up to” wording matters.

Other entries are distinct

The Act also amends serials 16, 17 and 20. Those changes should be read with their underlying default descriptions in the complete Punjab Sales Tax on Services Act. It is misleading to advertise a single Rs. 500,000 penalty as applying to every compliance failure.

When a notice arrives

Identify the serial, alleged conduct, relevant period and prior-default history. Obtain the calculation and submit evidence within the stated process. Preserve portal acknowledgements, invoices and filing records. This guide explains the amendments without assigning an offence to a taxpayer whose facts have not been reviewed.

Source and scope

Punjab Gazette, Act L of 2026 (1 July 2026), scanned copy hosted by ConSerIC, PDF pages 3-3. Text reviewed on 14 October 2026. This explains the enacted amendment; a notification-dependent procedure must be checked separately before use.