GST
Avoiding penalty by paying a Sec 73 notice early
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Facts
Under Sec 73(8), if you pay the tax and interest within 30 days of the notice, no penalty is payable and the proceedings on those points are deemed concluded.
Provisions and law
- Sec 73(8), CGST Act 2017No penalty if tax and interest are paid within 30 days of the notice
- Rule 142(3), CGST Rules 2017DRC-05 intimation that proceedings are concluded after full payment
Analysis
On a notice for tax of ₹3,00,000 and penalty of ₹30,000, paying tax and interest within 30 days saves the penalty. Pay through DRC-03 with the SCN reference. You can pay for the points you accept and contest the rest in DRC-06.
Conclusion
- Decide which points you accept
- Compute tax and interest on them
- Pay through DRC-03 linked to the SCN within 30 days
- Reply on the rest in DRC-06
- Look for DRC-05 closing the paid points
A Savvy can do this for you
Show cause notice under Sec 73, 74 or 74A and DRC-06 reply
Quote
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