CAN GST DEPARTMENT IMPOSE PENALTY ON INTEREST ON DELAYED PAYMENT OF TAX FOR FY 2018-19

[anil sharma]

I HAVE RECEIVED SCN U/S 73 FOR FY 2018-19 FOR NON PAYMENT OF INTEREST OF RS 204/- AND IMPOSES PENALTY OF RS 10000/- WHAT TO DO ?

AI Summary

Show cause notice under Section 73 for unpaid interest; pay within 30 days to avoid Rs. 10,000 penalty. A forum participant received a show cause notice (SCN) under Section 73 for FY 2018-19 due to non-payment of interest amounting to Rs. 204, with a proposed penalty of Rs. 10,000. Responses suggest that paying the interest within 30 days will negate the penalty. Some argue that penalties cannot be imposed solely on interest, while others emphasize that interest is integral to tax. The discussion includes interpretations of GST laws, with suggestions to resolve the issue by paying the interest promptly to avoid penalties, while also addressing broader legal implications and procedural questions.