Answer

1. F

   Facts

   Under Sec 74A, non-fraud cases carry penalty of 10 percent of tax or ₹10,000, whichever is higher, and nil if paid within 60 days of the notice. Fraud cases carry penalty equal to tax, cut to 15, 25 or 50 percent if paid before notice, within 60 days of notice, or within 60 days of order.

2. P

   Provisions and law

   • Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, with separate penalties for fraud and non-fraud cases
3. A

   Analysis

   Non-fraud: on ₹6 lakh tax, paying with interest within 60 days means no penalty, against ₹60,000 later. Fraud: paying within 60 days means 25 percent, ₹1.5 lakh, against ₹6 lakh. Read whether the notice alleges fraud because that decides the slab.

4. C

   Conclusion

   1. 1Check whether the notice alleges fraud or suppression.
   2. 2Compute tax, interest and the penalty for each option.
   3. 3Decide which parts to accept.
   4. 4Pay within 60 days through DRC-03 if accepting.

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