Find
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.
GST
Avoiding penalty by paying a Sec 73 notice early
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Provisions
Sec 73(8), CGST Act 2017; Rule 142(3), CGST Rules 2017
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.
Close
- 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
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