TMI BlogOnly interest can be recovered under section 73 of GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... I have paid the differential amount of GST to the government before issuance of Show Cause Notice u/s 73 . Now the department has issued Show Cause Notice for recovery of interest u/s 73 . Whether only interest can be recovered by the department under section 73 of the CGST Act,2017 . - Reply By Sadanand Bulbule - The Reply = Dear querist Since you have paid only the amount of tax but f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to pay interest much earlier to the commencement of adjudication proceedings under Section 73 , you are not only liable to pay the applicable amount of interest but also liable to a penalty equivalent to ten per cent of tax or ten thousand rupees, whichever is higher under Section 73[9] of the Act . In simple words, the pre-fixed amount of penalty is inevitably attracted consequent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-payment of tax with interest [together] before the commencement of adjudication proceedings. - Reply By Lav Prajapati - The Reply = yes, only interest can be recovered by the department under section 73 of the CGST Act,2017 , becaus of, if differential amount of GST paid after due date as per, tax amount paid along with @18% of short amount as interest u/s 50 of CGST Act . As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per Sec.73(1) reade along with rule 142 of CGST Act ,Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By KASTURI SETHI - The Reply = I agree with both experts. The querist should have paid interest on its own. The querist has kept Govt.money in its pocket for the material period. So he can't escape interest. He should not have waited for SCN. - Reply By Amit Agrawal - The Reply = SCN u/s 73 can be issued for 'any tax has not been paid or short paid or erroneously refunded, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax'. Considering you have paid differential taxes before SCN u/s 73 , Dept. should ideally raise SCN demanding such taxes plus interest penalty, while asking why amount already paid should not be appropriated against taxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demanded therein. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Padmanathan Kollengode - The Reply = Agreed with the views of experts. Ld Amit Ji has further clarified the position even further. Kindly pay the interest within 30 days of notice to avoid the penalty. - Only interest can be recovered under section 73 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f GST - Query Started By: - Sudhir Kumar Dated:- 10-2-2023 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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