ITC wrongly availed & penalty levied

[RAGHAV SHARMA]

Respected Members,

One of my client has claimed the excess CGST of Rs 3714 and SGST 3714 in the Financial Year 2018-2019 due to an accounting error. The department has issued the form DRC-01. In the DRC-01, the Proper officer calculated the Penalty of 10000 for each CGST and SGST. How far it is valid to calculate the penalty at 10000 for each CGST and SGST when the total ITC to be reversed is 7428? Kindly guide me in this matter

Thanks

AI Summary

GST penalty calculation as higher of fixed sum or percentage can be contested invoking minor breach exclusion.
A taxpayer claimed excess ITC and the proper officer, via DRC-01, proposed reversal and imposed penalty under the GST penalty provision as the higher of a fixed percentage of tax or a fixed monetary sum for each tax component; an argument is available to contest the penalty by invoking the minor breach limitation to seek remission or reduction through representation and appeal.