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Penalty u/s 74

Vipul (Article) (58 Points)

01 June 2018

What will be the propotionate penalty payable if the person liable to pay is willing to pay it after 30 days of SCN but before communication of Adjudication Order?

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(Guest)

Penalty u/s 74 of Cgst Act :
Penalty - 100% of tax
He will have to pay in the following manner :
If he pays before SCN-15% of penalty
If he pays within 30 days of SCN - 25% of penalty
If he pays within 30 days of D/O - 50% of penalty

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Vipul (Article) (58 Points)
Replied 01 June 2018

I asked what if 30 days have passed after SCN and D/o havent been communicated yet. What % ????

(Guest)

As per the section third option of 50% is available only if demand order is raised but as in your case no such order has been received so I think you should wait for the demand order otherwise you will be required to pay 100%of penalty if you pay after 30 days of SCN and before demand order. This situation has not been specifically dealt with in the Act.