SEC 122 CGST ACT

[RAHUL GAIKWAD]

sec 122 of CGST Act is applicable .? Penalty equivalent to Tax amount.?

My clinet had paid the Tax after 4 months. Now Officer calling him to Pay Penalty. What to do.?

[Prudhvi Jakkula]

Under which clause he demanded penalty?

[KASTURI SETHI]

If mala fide intention is proved, penalty will be equal to the amount of tax evaded/not paid. Have you paid interest or not ? Under Section 50 of CGST Act interest is required to be paid @ 18% if paid on your own. If interest and tax is paid on being pointed out by the Department and mala fide intention is involved, Rate of interest will be @24%.

It appears to me Section 122 (iii) & (iv) of CGST Act are attracted in your case. You crossed three months.

AI Summary

Penalty for willful tax evasion may equal the tax due, with higher interest if payment follows detection.
Section 122 exposes a taxpayer to a penalty equal to the tax evaded where mala fide intention is proved, and provisions addressing delays beyond three months may be engaged. Interest is payable on delayed tax: a standard self-assessed rate applies if tax is paid voluntarily, while a higher penal interest rate applies if tax and interest are paid only after departmental detection and mala fide intention is established. Central factual issues are whether interest was paid, timing of payment, and proof of mala fide intent.