Gst section 74 (1)

The ₹20,000 penalty for a ₹48 demand under Section 74 is legally invalid because Section 74 does not contain a minimum penalty clause. To resolve the issue, pay the ₹48 tax plus interest via DRC-03 and file a reply (DRC-06) within 30 days. In your reply, argue that a ₹48 error lacks fraudulent intent (requesting reclassification to Section 73, where the penalty drops to zero if paid within 30 days), and highlight that even if kept under Section 74, paying within 30 days restricts the maximum penalty to 25% of the tax, which is only ₹12.