Penalty u/s 73(11) of CGST, 2017

[SUBRATA RAY]

Audit conducted u/s 65 by the department and after audit observation SCN was issued u/s 73(11) of the CGST Act, 2017 for imposition of penalty for non payment of self assessed tax within 30 days from due date. Is there any defence can be taken on some relevant grounds to counter imposition of penalty

AI Summary

Debate on CGST Act: Can Section 75(12) Allow Tax Recovery Without Penalty Under Section 73(11)? A discussion on a forum addresses the imposition of penalties under Section 73(11) of the CGST Act, 2017, following an audit for non-payment of self-assessed tax within 30 days. A participant suggests financial constraints as a reason for the delay. Another participant questions whether Section 75(12) could be interpreted to allow recovery under Section 79 without penalty. However, it is noted that Section 79 is more stringent, requiring payment without a show cause notice. A circular clarifies that penalties under Section 73(11) are generally not applied if tax and interest are paid late.