Settle Tax Dues Early to Avoid Penalties: Key Provisions Under Sections 73(6) and 74(6) of CGST Act, 2017

A taxpayer can settle tax dues before the issuance of a show cause notice (SCN) or order, potentially avoiding penalties. Under Section 73(6) of the CGST Act, 2017, if tax and interest are paid before an SCN, no notice or penalty is issued. If paid within 30 days after an SCN under Section 73, penalties are waived, and proceedings are concluded. Under Section 74(6), if tax, interest, and a 15% penalty are paid before an SCN, no notice is issued. If paid within 30 days after an SCN under Section 74, with a 25% penalty, proceedings are concluded.