TaxTMI 
TaxTMI 
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
Penalty u/s 73(11) of CGST, 2017
09 Oct 2023 
8 Replies 
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Penalty under section 73(11) for late self assessed tax may be avoided where tax was paid late with interest.
The dispute concerns imposition of penalty under section 73(11) for non payment of self assessed tax within thirty days after the due date following an audit under section 65. Possible defences include demonstration of late payment with interest, reliance on administrative guidance that section 73 is generally not invoked where tax is paid late (with potential recourse to a general penalty under section 125), and arguments about the interplay of section 75(12) and section 79 which may channel recovery of self assessed tax through section 79 procedures rather than by section 73 penalty. (AI Summary)
The dispute concerns imposition of penalty under section 73(11) for non payment of self assessed tax within thirty days after the due date following an audit under section 65. Possible defences include demonstration of late payment with interest, reliance on administrative guidance that section 73 is generally not invoked where tax is paid late (with potential recourse to a general penalty under section 125), and arguments about the interplay of section 75(12) and section 79 which may channel recovery of self assessed tax through section 79 procedures rather than by section 73 penalty. (AI Summary)