Penalty under Section 73(1) of CGST Act, 2017

[Alkesh Jani]

Dear All Experts,

Show Cause Notice was issued for recovery of short payment of CGST Rs.1600/- and SGST Rs.1500/- under Section 73 of CGST Act, 2017.

Now the Query is :- what will be the amount of penalty Rs.10,000/- for CGST and SGST or Rs.10,000/- for CGST and Rs.10,000/- for SGST (Total Rs.20,000/-) (Refer Section 73(9) of CGST /SGST Act, 2017).

Please share your valuable insight and any of such quantification.

Thanks in advance.

AI Summary

Debate on CGST Act Section 73(1) Penalties: Rs. 10,000 Each for CGST/SGST or Rs. 20,000 Total? A discussion on the penalty provisions under Section 73(1) of the CGST Act, 2017, revolves around whether the penalty for short payment of CGST and SGST should be Rs. 10,000 each or Rs. 20,000 in total. Participants debate the interpretation of Section 73(9), comparing it to Section 74, which deals with fraud cases. While one expert argues that penalties under Sections 73 and 74 should not be compared, another suggests that the law is flawed and should be amended to prevent penalties from exceeding the tax amount. The discussion also touches on the challenges small taxpayers face in contesting penalties due to high legal costs.