PENALTY DURING DEPARTMENTAL GST AUDIT

[NAMAN DOKANIA]

During audit under gst department raised demand named as audit observation.. with interest and asked to pay penalty of 15%. The assessee is paying within 30 days of issue of audit observation...

Is the view of charging penalty is correct???

AI Summary

GST Audit Penalty of 15% Imposed; Debate on Justification Under Section 74 of CGST Act and Payment Strategy During a departmental GST audit, a penalty of 15% was imposed alongside a demand for tax and interest payment within 30 days. The discussion revolves around whether this penalty is justified. One respondent affirms the penalty's correctness under Section 74 of the CGST Act, suggesting it's better to pay and close the case to avoid higher penalties. Another respondent advises checking if the demand falls under Section 73 or 74, as penalties differ based on the nature of the tax shortfall. The consensus leans towards paying the penalty to avoid further litigation costs.