Benefit of reduced penalty

If you deposit the tax and interest before the issuance of a show-cause notice in a case involving fraud or suppression of facts, you may qualify for the reduced penalty of 15% of the tax amount as provided under Section 74(8) of the CGST Act. This payment acts as a settlement, and once the tax, interest, and this reduced penalty are paid, the proceedings related to the notice are deemed to be concluded.