Applicability of Sec 74(5)

[KESHAV GROVER]

Wether Department can compel the taxpayer for deposit of penalty of 15% u/s 74(5) before issue of DRC 01A like under GST Audit or under normal inquiry or under scrutiny of returns or under any other proceeding where taxpayer is ready to deposit GST with interest ?

AI Summary

Can Tax Department Enforce 15% Penalty Before DRC 01A Under GST Act Section 74(5)? Experts Say No. A discussion on the applicability of Section 74(5) of the GST Act centers around whether the tax department can compel a taxpayer to deposit a 15% penalty before issuing DRC 01A. The consensus among participants is that the department cannot enforce this penalty without finalizing the demand. Some contributors argue that if a taxpayer is ready to pay the GST with interest, the penalty should not apply unless the taxpayer's situation falls under Section 74, which involves more severe circumstances than Section 73. The discussion also touches on the mismatch of Input Tax Credit (ITC) and its implications under Section 74.