NOTICE U/S 74(5) FOR THE CURRENT F.Y.

[Renju Joy]

I have missed to show reverse charge on inward supplies in GSTR 3B for the month of June 2019.

Now I have received a notice dated 29.02.2020 u/s 74(5) for this non payment. Am I able to show this in the GSTR 3B of Feb, which is pending to be filed or should I pay the tax along with penalty and interest through DRC-03.

Thanks & Regards.

AI Summary

Payment under fraud recovery provisions bars input tax credit; pay tax with interest, seek waiver of penalty and officer concurrence.
A communication under Section 74(5) permits voluntary payment of the ascertained tax with statutory interest and a 15% penalty and requires informing the proper officer; taxes paid under the recovery provisions for evasion are commonly treated as ineligible for input tax credit. Practitioners disagree whether a subsection (5) intimation is a procedural notice triggering adjudication or merely an invitation to self-assess and pay; the choice to pay, report in a subsequent return with officer concurrence, or await a formal show cause notice carries distinct credit and penalty consequences.