Section 73 and74

Ketan Singh (self employed) (25 Points)

19 October 2021

can we pay penalty of u/s 73 &74 by credit ledger.

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3 Replies

Kev Men (228 Points)
Replied 19 October 2021

As per section 49(4) of the CGST Act, the amount available in the Electronic Credit Ledger can be used toake payment of 'output tax' only.
Hence, 'penalty' cannot be paid by credit ledger.

Sanjay Kumar (27 Points)
Replied 19 October 2021

Penalty can be paid only from cash ledger

debora M (BUSINESS DEVELOPMENT MANAGER) (1376 Points)
Replied 19 October 2021

However, due to amendment in the rule it is optional. Thus,if in response to such intimation u/s 74 (5) person pays such ascertained tax and interest, then he will required to pay penalty equivalent to 15 % of the such tax in fraud case. And no penalty is payable under section 73 (5) for normal case.