Section 1[b]129 of gst act

This query is : Resolved

jaigurudev (Querist)
Follow

20 March 2021 please advice me how much can penalty+tax can be levied under section 1[b]129 under gst act.equal to tax+penalty or 100% of goods value

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

11 July 2024 Under Section 129 of the Central Goods and Services Tax (CGST) Act, 2017, penalties and tax liabilities for violations related to the transportation of goods are structured as follows:

1. **Detention, Seizure, and Release of Goods**: When goods are being transported without proper documents or in contravention of the GST law, they can be detained or seized by the proper officer of GST. The detained goods can be released upon payment of applicable tax and penalty.

2. **Penalties under Section 129**:
- If the proper officer detains goods and is satisfied that a violation has occurred, the penalty can be up to 100% of the tax payable on such goods or INR 10,000, whichever is higher.

3. **Calculation Example**:
- If the tax payable on the goods is INR 50,000, the penalty can be up to INR 50,000 (100% of the tax) or INR 10,000, whichever is higher. In this case, the penalty would be INR 50,000.

4. **Additional Considerations**:
- Apart from the penalty, the goods may also be liable for the tax amount that was evaded or for which the proper documents were not maintained.

5. **Discretion of the Proper Officer**:
- The exact amount of penalty and tax liability under Section 129 is determined by the proper officer based on the specific circumstances of the case. Factors such as the nature of the violation, intent, and cooperation of the parties involved may influence the final decision.

6. **Legal Remedies**:
- If you believe the penalty or tax determination is unjustified, you have the right to appeal the decision to the appropriate appellate authority under GST law.

To ensure compliance and mitigate risks associated with penalties under Section 129, it's crucial to maintain proper documentation, adhere to GST regulations regarding the transportation of goods, and promptly address any issues raised by GST authorities during transit.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

madhu sudan

Jaya Ladhwani

Rampal Saini

Vidit Ratanghayra

K.S. ANANTHARAJAN

Subscribe Now

Section 1[b]129 of gst act

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA