TaxTMI 
TaxTMI 
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.?
SEC 122 CGST ACT
22 Jun 2019 
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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. (AI Summary)
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. (AI Summary)