penalty u/s 73(8)

[AMIT BATHAM]

My dear, respected colleague, could you elaborate on the penalty stated in section 73(8) and whether it is mandatory in nature? For example, if the demand in the notice is only for 400 rupees, and the assessee deposits the demand after the Notice's specified period, will they actually be responsible for paying the penalty of 20000.00?

AI Summary

GST Penalties: Section 73(8) Allows Relief; Sections 73(9) & 73(11) Mandate Penalties; Section 126(6) May Offer Defense. A discussion on the Goods and Services Tax forum revolves around the penalties under sections 73(8), 73(9), and 73(11) of the GST Act. Initially, there was confusion about whether penalties are mandatory. It was clarified that section 73(8) does not impose a penalty if tax and interest are paid within 30 days of the notice. However, sections 73(9) and 73(11) mandate penalties, as indicated by the use of 'shall.' Some participants argue that section 126(6) could be used to contest penalties, as it addresses minor breaches and procedural errors, suggesting penalties might not always be mandatory.