Only interest can be recovered under section 73 of GST

[Sudhir Kumar]

I have paid the differential amount of GST to the government before issuance of Show Cause Notice u/s 73. Now the department has issued Show Cause Notice for recovery of interest u/s 73. Whether only interest can be recovered by the department under section 73 of the CGST Act,2017.

AI Summary

Clarification on Recovering Interest Under Section 73 of CGST Act After Paying Differential GST Pre-SCN A discussion on a forum addresses whether only interest can be recovered under Section 73 of the CGST Act, 2017, after a taxpayer paid the differential GST amount before a Show Cause Notice (SCN) was issued. Responses indicate that while the taxpayer is liable for interest, a penalty may also apply if interest is not paid before adjudication proceedings commence. Experts agree that the department can issue an SCN for unpaid or short-paid taxes, requiring interest and possibly a penalty. It is advised to pay interest promptly to avoid further penalties.