Penalty u/s 129 and 130, Section 17(5)(i)

[CHINTAPALLI MANIKANTA]

Dear Sir/Madam

Please respond to my query

Thanks in advance

After amendment of Section 129 now penalty is only needed to be paid for release of goods and conveyance - and tax is to be paid along with GSTR-3B. So 17(5)(i) says tax paid in accordance with Sec 74, 129, 130 - ITC is not available - so now 17(5)(i) is not applicable in case of sec 129? Means we can take ITC.

And in sec 130 the word tax is not there, nowhere said to pay tax - means 17(5)(i) doesn't apply here. If yes then why it sec 130 included in 17(5)(i).

Is my understanding correct.

AI Summary

Amendments to CGST Act Sections 129 & 130 Clarify ITC Claim Eligibility When Only Penalties Involved The discussion revolves around the implications of amendments to Sections 129 and 130 of the CGST Act, particularly concerning penalties and the availability of Input Tax Credit (ITC). The original query questions whether ITC can be claimed post-amendment since Section 129 now only involves penalties, not taxes, for the release of goods and conveyance. Respondents generally agree that the amendment means ITC can be availed as Section 17(5)(i) does not apply when only penalties are involved. The conversation also touches on the interpretation of tax and penalty provisions and their impact on ITC eligibility.