PAYMENT OF TAX BEFORE ISSUANCE OF SCN OR ORDER - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

7. PAYMENT OF TAX BEFORE ISSUANCE OF SCN OR ORDER 7.1. A taxpayer has the option of payment of tax dues before issuance of SCN and/or order, as discussed below. 7.2. If any person pays tax dues along with interest on the delayed payment of that tax, before the issuance of show cause notice, either on his own or on the direction of the proper officer and informs the proper officer in writing, then as per Section 73(6) of the CGST Act, 2017, no show cause notice shall be issued for such tax dues or the penalty payable. 7.3. If the person to whom show cause notice demanding tax under Section 73 of the CGST Act, 2017 has been issued, pays the tax along with interest on the delayed payment of that tax, within a period of thirty days from the date of issue of the said show cause notice, then as per Section 73(8) of the CGST Act, 2017, penalty shall not be imposed and all the proceedings against that person relating to the said show cause notice shall be considered as concluded. 7.4. The person chargeable with tax may pay the tax dues on the basis on his own or on the direction of the Proper Officer, before the issuance of show cause notice, along with the applicable interest for the delayed payment of tax and also pay penalty equivalent to 15% of the tax amount and inform the Proper Officer about such payment. As per Section 74(6) of the CGST Act, 2017, the Proper Officer shall not serve any notice in respect of the tax so paid or any penalty payable. 7.5. If the person to whom show cause notice demanding tax under Section 74 of CGST Act, 2017 has been issued, pays the tax dues along with interest on the delayed payment of that tax and penalty equivalent to 25% of the tax dues, within a period of thirty days from the date of issue of the said show cause notice, then as per Section 74(8) of the CGST Act, 2017, all the proceedings against that person relating to such show cause notice shall be considered as concluded.