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Prior to the amendment to Rule 142 of CGST Rules.

According to Rule 142 of CGST Rule, The proper officer, before servicing notice u/s Section 73(1) or Section 74(1) of CGST Act to a Registered Person, SHALL MANDATORILY Communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A. Further according to Section 74(5) of CGST Act, If a Registered Person pays the demanded amount as ascertained and communicated by the proper officer in FORM GST DRC-01A then such Registered Person is liable to pay Penalty equivalent to 15%   

Implications of amendments in GST dated 15.10.2020 in Rule 142 of the CGST Rules

Otherwise, If that registered person pays the demanded amount, after servicing of notice u/s Section 73(1) or Section 74(1) of CGST Act, then such registered person is liable to pay Penalty equivalent to 25% according to Section 74(8) of CGST Act, 

 

Post amendment vide notification no.79/2020 dated 15.10.2020 in Rule 142 of CGST Rule, 

The proper officer MAY in his or her DISCRETION, before servicing notice u/s Section 73(1) or Section 74(1) of CGST Act to a Registered Person, Communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A. So now and onwards The proper officer MAY in his or her DISCRETION not Communicate FORM GST DRC-01A before servicing Notice and directly service a Notice u/s Section 73(1) or Section 74(1) of CGST Act on any Registered Person.  In that case, Such a Registered Person should have to pay a Penalty equivalent to 25% according to Section 74(8) of the CGST Act.

 

Reference:
Notification No. 79 /2020 - Central Tax

Also Read: Implication on HSN Disclosure vide recent GST notifications
Analysis of amendments in 1st proviso to rule 46 for Invoicing under GST

 


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Category GST, Other Articles by - Heet Shah 



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