Penalty U/s 74

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..... Penalty U/s 74
Query (Issue) Started By: - Komal Agarwal Dated:- 4-2-2025 Last Reply Date:- 4-2-2025 Goods and Services Tax - GST
Got 2 Replies
GST
Dear Sir, GST department had issued an Intimation Notice U/s 74 in form DRC01A to my client for reversal of ITC of Rs 2,10,000/- plus applicable interest and penalty @15% of tax on 12/07/2024. Client deposited tax amount of Rs 2,10,000/- .....

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..... via DRC03 on 16/07/2024. He did not deposited interest and applicable penalty. As on 27/07/2024 the department issued Show Cause Notice U/s 74 for payment of interest and Penalty as per section 74 of CGST Act. Client did not respond the SCN. Finally the demand order was issued on 01/02/2025 for payment of applicable interest and 100% Penalty. The provision of Section 74 provide the penalty .....

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..... @15% if payment made before issue of SCN, 25% if payment made within 30 days of SCN, 50% if payment made thereafter, 100% in other case. In this case client had already paid tax before issue of SCN. Please tell me the applicable penalty rate to the client. Thanks Reply By Sadanand Bulbule: The Reply: Dear Plz peruse Section 74(5) as under: (5) The person chargeable with tax may, before s .....

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..... ervice of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. Hope it would answer your query. Reply By KASTURI SETHI: The Reply: Now in o .....

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..... rder to be eligible for the benefit of reduced penalty and for deemed conclusion of proceedings the Noticee will have to pay interest and 50 % penalty also within stipulated period as per Section 74 (11) failing which 100 % penalty will have to be paid as per Adjudication Order. I also concur with the views of Sh.Sadanand Bulbule, Sir.
Discussion Forum - Knowledge Sharing .....

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