https://www.taxtmi.com/forum/issue?id=118030 The department should not compel payment of the reduced penalty under Section 74(5) before a demand is confirmed; recovery of penalty follows finalisation. A settlement option permits payment of a lower penalty to close proceedings, but admitting non availability of input tax credit by reversing ITC and paying interest can prompt penalty proceedings, whereas successfully defending entitlement on merits avoids tax and penalty exposure. en-us Tue, 05 Jul 2022 14:43:31 +0530 Thu, 23 Jan 2025 15:54:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118030 The department should not compel payment of the reduced penalty under Section 74(5) before a demand is confirmed; recovery of penalty follows finalisation. A settlement option permits payment of a lower penalty to close proceedings, but admitting non availability of input tax credit by reversing ITC and paying interest can prompt penalty proceedings, whereas successfully defending entitlement on merits avoids tax and penalty exposure. Discussion-Forum GST Tue, 05 Jul 2022 14:43:31 +0530 https://www.taxtmi.com/forum/issue?id=118030