Answer

1. F

   Facts

   Under Sec 74A, in non-fraud cases, paying tax and interest within 60 days of the notice means no penalty. In fraud cases, paying tax, interest and 25 percent penalty within 60 days of the notice concludes the matter.

2. P

   Provisions and law

   • Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, fraud and non-fraud cases
   • Rule 142(3), CGST Rules 2017DRC-05 intimation that proceedings are concluded after full payment
3. A

   Analysis

   If a non-fraud notice for FY 2024-25 proposes tax of ₹5,00,000, paying it with interest within 60 days removes the penalty, which would otherwise be the higher of 10 percent or ₹10,000. In a fraud case, the penalty falls from 100 percent to 25 percent if you pay within 60 days.

4. C

   Conclusion

   1. 1Check whether fraud is alleged
   2. 2Compute tax, interest and any reduced penalty
   3. 3Pay through DRC-03 linked to the notice within 60 days
   4. 4Inform the officer and track DRC-05

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.