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Applicability of penalty

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nikhil

dhule

181 Points Posted on 20 August 2023

Sirji, having one query with regards to applicability of penalty on Fake invoicing, if a taxpayer pay tax along with applicable interest and penalty at the time of initiating of summon u/s 70 then what will be quantum of penalty, is the penalty is applicable u/s 74(5) ie 15% or u/s 122 ie 100%

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Quick Summary

This discussion explores the correct penalty applicable to fake invoicing under GST. The core question is whether the penalty should be 15% as per Section 74(5) or 100% under Section 122, particularly when the taxpayer pays the due tax and interest at the time of a summons under Section 70. Reference is made to Circular No. 171/03/2022-GST dated 06.07.2022 for clarification.