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Penalty where tax already paid

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Shiv Karwa

221 Points Posted on 30 April 2023

is penalty applicable on late payment of liability paid through gstr3b. In audit gst officer want penalty on late payment through 3b. under section 74(5) , 73(11) or 125. why penalty when tax is already paid in 3b.

Replies (3)

Quick Summary

This discussion addresses whether penalties are applicable for late payment of GST liability via GSTR-3B, even when the tax has been paid. Participants clarify that penalties under sections 73 & 74 are generally not applicable if tax is paid voluntarily before any notice or show cause notice (SCN) is issued by the department. While interest under section 50 is applicable for late payment, penalties are typically reserved for cases of non-payment or short payment of taxes.

Jeetu Kodwani

Consultant

423 Points Posted on 30 April 2023

Penalty is not applicable if tax is paid voluntarily before any notice from department.

CA SANDESH MAHIPAL

Practicing in GST and MSME

1985 Points Posted on 01 May 2023

73 & 74 can be imposed if you have not paid or short paid any taxes. In your case, you have already paid taxes, only the point is after due date but before any notice by deptt.

The officer should not invoke 125 just like that. Mere late deposition of tax is not a ground for 125 as you have already been charged under 50.

Regards