TaxTMI 
TaxTMI 
Manner of penalty calculation under IGST Act, 2017 for the show cause notices issued under section 73(1)/74(1) of the KSGST Act, 2017 read with section 20 of the IGST Act, 2017 - clarifications issued
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....rala.gov.in Ph: 0471-2785276 No. SGST/5310/2024-PLC6 Date: 13-08-2024 Circular No.12/2024-Kerala SGST Sub: - Manner of penalty calculation under IGST Act, 2017 for the show cause notices issued under section 73(1)/74(1) of the KSGST Act, 2017 read with section 20 of the IGST Act, 2017 - clarifications issued - reg. 1. It has come to the notice that field formations require clarity in the computation and imposition of penalty under the fourth proviso of Section 20 of the Integrated Goods and Services Tax (IGST) Act, 2017 in cases where tax is being demanded under Section 73(1)/74(1) of the Kerala Goods and Services Tax (KSGST) Act, 2017. 2. In order to ensure uniformity in the implementation of th....
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....shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice" 7. Section 20(xxv) of the Integrated Goods and Services Tax Act, 2017 reads as follows: "Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to, (i) scope of supply; (ii) composite supply and mixed supply; (iii) tim....
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....viable under the IGST Act would be the sum total of the quantum of penalty to be levied under the CGST Act and the SGST Act. This is clarified with an Illustration worked out as under: 12. Illustration: For a service attracting 18% rate of tax, the tax levied under CGST is at the rate of 9% and that under SGST is at the rate of 9%. If it becomes an intra-state supply, the penalty to be levied on each Act is 10% as per section 73(9) of the CGST and the SGST Acts. (i.e., Taxable value x 9% x 10%). Now, applying these rates to the above clause of the IGST Act- 。 Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax Act (i.e., Taxable value x 9% x 10%) or th....
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....T=25,00,000 x 9% x 22,500/- (CGST) is 10,000 higher whichever is & SGST = 25,00,000 x 9% x 22,500/- 10% |(SGST) (or) 10,000 whichever is higher Penalty leviable under IGST Act CGST = 2,00,000 x 9% x 3,600 (as per 4th proviso of section 20 of the IGST Act) 10% (or) 10,000 (1,800+1,800) whichever is higher + or 20,000 (10,000 SGST = 2,00,000 x 9% x+10,000) 10% (or) 10,000 whichever is whichever is higher higher. Here it is Rs. 20,000/- 1/258967/2024 SGST/5310/2024-PLC6 Example 2: An adjudicating authority has decided to confirm a demand under section 73 of the Act for the following items of ineligible ITC utilized by a taxable per....
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....credited to any particular state. In such a situation, all the recipient states have suffered tax loss in these transactions and are entitled to receive the penalty as per the place of supply provisions of the Act. Therefore, the calculation of penalty under IGST Act shall be made in the 1/258967/2024 SGST/5310/2024-PLC6 following manner: Description Destination Calculation Penalty amount (Rs.) Penalty leviable Delhi under IGST Act 15,00,000 x 9% x 10% IGST - 27,000/- (or) 10,000 whichever is higher 13,500+13,500 + |(or) 10,000+10,000 15,00,000 x 9% x 10% (or) 10,000 whichever is whichever is higher higher Karnataka 24,00,000 x 9% x 10% IGST - 43,200/- (or) ....