Section 73(11)

[Komal Agarwal]

FY 2018-19 RCM liability paid at the time of GSTR 9/9C on Feb 2021 but ITC not claimed. Now the GST officer is demanding interest U/s 50 and penalty U/s 73(11). Whether penalty u/s 73(11) is applicable? Any remedy/ argument available to us against penalty.

Thanks

AI Summary

Penalty under Section 73(11) may be contested; paying interest and statutory waiver options can affect liability.
RCM liability for FY2018-19 was paid late at annual filing; a show-cause notice now demands interest under Section 50 and penalty under Section 73(11). Key defenses include paying interest promptly and seeking penalty relief, challenging SCN validity on procedural grounds, arguing for proportional reduction of penalty given low quantum, and reliance on a proposed statutory waiver mechanism (Section 128A) allowing conditional waiver of interest and penalties for past fiscal years if tax is paid within prescribed timelines.