Issue regarding discharge of gross tax liability while filing gst returns

[Sanjeev Agrawal]

It is requested to guide regarding any circular, notification or any other direction by Government of India which states that 5% of the gross tax liability to be compulsorily paid from cash ledger while filing gst returns.

AI Summary

Clarification on GST: No Legal Basis for Mandatory 5% Cash Payment; It's a Departmental Alert, Not Enforceable. A participant raised a query about the requirement to pay 5% of gross tax liability from the cash ledger when filing GST returns. Various contributors suggested rules and notifications, such as Rule 86B and Notification 94/2020, but these did not resolve the issue. The query concerned a penalty order under Section 74, where an Additional Commissioner questioned the applicability of the 5% rule. It was clarified that there is no legal backing for a mandatory 5% cash payment; it serves as a departmental alert for potential sales suppression. The discussion included references to specific rules and notifications but concluded that the 5% requirement lacks legal enforcement.