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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....-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 the provisions of law across the field formations, in exercise of the powers conferred by section....

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....oneously 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) time and value of supply; (iv) input tax credit;............. (xvi) demands and recovery;. (xxi) offences and penalties; …………. (xxv) miscella....

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....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 the State Goods and Services Tax Act (i.e., Taxable value x 9% x 10%), the penalty leviable under this Act shall be the sum total of the said penalties ((Taxable value x 9% x 10%) + (Taxable value x 9% x 10%)) ○ Therefore, the p....

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....0,000 (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 person. Inv. No. H3744 14.04.2020 Apr. 2020 Inv. Date Tax Period Taxable Value IGST CGST SGST 72,00,000 12,96,000 P4180 08.08.2020 Aug. 2020 1,00,00,000 18,00,000 Total 1,72,00,000 30,96,000 The adjudicating authority should impose the penalty under the IGST Act in the following manner; Description Penalty leviable under IGST Act Calculation Penalty amount (Rs.) 1,72,00,000 x 9% x 10% He....

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....0 + |(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) 10,000 whichever is higher 21,600+21,600 + (or) 10,000+10,000 24,00,000 x 9% x 10%| (or) 10,000 whichever is whichever is higher higher Tamilnadu 35,00,000 × 9% x 10% IGST - 63,000/- (or) 10,000 whichever is Odisha higher 31,500+31,500 + (or) 10,000+10,000 35,00,000 x 9% x 10%| (or) 10,000 whichever is whichever is higher higher |10,00,000 × 9% x 10% IGST - 20,000/- (or) 10,000 whichever is higher + 9,000+9,000 (or) 10,000+10,000 whichever is 10,00,000 x 9% x 10%, (or) 10,000 whichever is higher higher Korolo 10.00.000 x 9% x 10% COST 1/25....