TaxTMI 
TaxTMI 
Is it mandatory to impose penalty u/s 73(11) if self assessed tax is not paid within 30days from due date for payment of tax or is it discretionery power of proper office who iisued the SCN.what are defence can be taken to counter levy of penalty
Imposition of penalty u/s 73(11) of CGST Act, 2017
08 Oct 2023 
6 Replies 
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Penalty under Section 73(11) may not apply where tax is paid late; general penalty provisions may instead be invoked.
Debate exists whether the statutory 'shall' in the specific penalty provision makes imposition mandatory; however Circular No. 76/50/2018 states that where tax is paid late in returns like GSTR 3B, section 73 penalties are generally not invoked and instead a general penalty may be imposed after due process, so defences to an SCN should emphasise late payment and the circular's guidance to counter a levy under the specific provision. (AI Summary)
Debate exists whether the statutory 'shall' in the specific penalty provision makes imposition mandatory; however Circular No. 76/50/2018 states that where tax is paid late in returns like GSTR 3B, section 73 penalties are generally not invoked and instead a general penalty may be imposed after due process, so defences to an SCN should emphasise late payment and the circular's guidance to counter a levy under the specific provision. (AI Summary)