GST AUDIT U/S 65 AND SHOW CAUSE U/S 73

[BARUN MUKHERJEE]

Respected Sir,

Department has already conducted GST Audit u/s 65 and ADT-2 was issued accordingly for the F.Y. 2018-19 to 21-22. As per audit observation the taxpayer has already paid the tax along with applicable interest and penalty. Now Jurisdiction office has sent show cause notice u/s 73 for the F.Y. 2020-21. Is there any provision or notification by which proceeding u/s 73 can be dropped.

AI Summary

GST penalty relief where tax and interest were paid before notice, contest penalty and seek refund or adjustment.
A show cause notice under the tax determination provisions issued after audit may be merely confirmatory where the taxpayer has already paid the tax and interest; if payment of tax and interest preceded the notice, proceedings are to be concluded without imposing penalty, and the taxpayer should reply contesting penalty and seek refund or appropriate adjustment while ensuring all facts are fully disclosed.