Confusion while reading Section 76 along with Section 73/74

[Punit Agarwal]

How can Section 76 be differentiated from Section 73/74?

Say for E.g.

If i have not deposited the tax beyond 3 months of due date of filling GSTR-3B but correctly disclosed tax payable in GSTR-1, under which section can Department demand Tax.

The Area of concern for me is the Penalty.

Section 76 asks for 100 Penalty and 73/74 asks for Lower rates of penalty (Lowest being Nil and 15% respectively)

[KASTURI SETHI]

Sh.Punit Aggarwal Ji,

In this scenario, penalty under Section 73 will be imposed upon by the department. There is no confusion.

Section 73 stands for penalty on account of bona fide mistake. Mistake committed without intention to evade tax e.g. calculation error, procedural lapse, technical lapse etc.

Section 74 is for penalty on account of mala fide intention to evade tax.

Section 76 stands for penalty on those persons who collect tax which is not leviable as per the Act and keep that collected tax with himself. He does not depost such collected into Govt. account. This offence is very very serious. None has right to retain such tax with one's pocket.

[Mr Rao]

Dear sir,

I agree with Shri Kasturi sir.

[Punit Agarwal]

But Kasturi Sir,

Section 76(1) clearly states that " irrespective of whether such supplies in respect of which such amount collected is taxable or not"

So I believe 76 is not only restricted to non taxable supplies as you mentioned. There might be some other catch which I believe I am missing.

[KASTURI SETHI]

Sh.Punit Agarwal Ji, If you do not agree with me, you should explain what is hidden more therein. Such Section was in Service Tax and Central Excise also. Moreover, I have not 'forced' Sh.G.B.Rao to agree with my views. Do we both are unable to interpret and analyse Section 76. ?

[Ganeshan Kalyani]

Sri Punit Sir the provision 76(1) states that tax collected by taxpayer should not be retained with him. The tax collected may be actually collectable (on taxable supplies) or not collectable (on exempt supply) , but once collected should not be retained by taxpayer with him. It has to be deposited to Govt. treasury.

AI Summary

Debate on GST Law: Clarifying Penalty Application Under Sections 73, 74, and 76 for Undeposited Taxes A discussion on a forum addresses confusion about the application of Sections 73, 74, and 76 under the Goods and Services Tax (GST) law. The initial query concerns the appropriate section for imposing penalties when tax is disclosed but not deposited. Section 73 pertains to penalties for bona fide mistakes without intent to evade tax, while Section 74 deals with intentional tax evasion. Section 76 involves penalties for retaining collected tax, whether or not the supply is taxable. Participants debate the interpretation of Section 76, emphasizing that collected tax must be deposited with the government.