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GST-Question related to Offence and Penalty

Ravi SADhiyan (Practice) (4510 Points)

15 May 2020

XYZ carries goods from Vadodara to Pune. The value of the goods is Rs. 80,000 which are chargeable to tax @ 18% IGST and in transit, proper officer intercepted the same under section 68 of the CGST Act, and found contravention.
Calculate the penalty payable under section 129 of CGST Act, 2017:
 If XYZ does not come forward for payment of tax and penalty.

The Above Question cover in (May 19 Sug) but not clear

Kindly Explain this Point

Thanks With Regards

Ravi SADhiyan

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2 Replies

Hariom Viradiya (182 Points)
Replied 15 May 2020

In your case
TOTAL PAYMENT FOR RELEASE OF GOODS = Tax + Penalty as below

Tax = 80,000 * 18% = 14,400
Penalty = 50% of value of goods before tax
= 50 % * 80,000 = 40,000

Total = 14,400 + 40,000 = 54,400

Ravi SADhiyan (Practice) (4510 Points)
Replied 15 May 2020

Originally posted by : Hariom Viradiya
	In your case TOTAL PAYMENT FOR RELEASE OF GOODS = Tax + Penalty as belowTax = 80,000 * 18% = 14,400Penalty = 50% of value of goods before tax = 50 % * 80,000 = 40,000Total = 14,400 + 40,000 = 54,400

BUT ICAI TAKEN Below View (MY ANSWER ALSO MATCH WITH YOU ) (May 19 Sug)

If XYZ does not come forward for payment of tax and penalty (It has been assumed that tax
has been paid on the goods)
= [Rs. 80,000 × 100% (50% under CGST plus 50% under SGST/UTGST)] – [Rs. 80,000 ×
18%] = Rs. 80,000 - Rs. 14,400 = Rs. 65,600