73(5) Voluntary GST Payment

[Bayyareddy DK]

Dear Sir/Madam,,

I have utilised input tax for the fy 19-20 and filed monthly and annual returns in time. I came to know now that input should have not been utilised. Voluntarily on 5/7/21, i paid tax along with interest U/s. 73(5) at 24%. The office incharge called me today and asking penalty amount as it is paid after filing of annual returns. Is this penalty has to be paid even if taxes paid voluntarily before issue any notice.? Please advice

AI Summary

Voluntary GST payment under Section 73 precludes related statutory penalty if made before notice; general penalty may still apply.
A voluntary payment of tax and interest made before service of a recovery notice, accompanied by written intimation to the proper officer, prevents issuance of that recovery notice and bars imposition of the related statutory penalty. The specific penalty tied to unpaid self-assessed tax applies only when the recovery provision is invoked and where tax remains unpaid beyond thirty days of the GSTR-3B due date; otherwise, a general penalty for contraventions may be imposed after due process. Usual interest is the standard statutory rate, not the higher mala fide rate.