Penalty u/s 122 and u/s 74 of cgst act

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Sabita Sahoo (Querist)
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15 December 2019 In sec 122, in case of intention of fraud,penalty amount is 10,000 or amount of tax evaded which ever is higher and in sec 74,penalty amount is equivalent to tax.So please clarify the implication of both sections.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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16 December 2019 Sec 122 has wider implications . It has sub sections 122(1) , 122(2) & 122(3)

74 will be applicable for
tax is unpaid/short paid or,
refunds have been wrongly calculated or,
Input tax credit has been wrongly availed/utilised

whilst these are one of the reason for penalty under sec 122 .
section 122 (3). deal with the situations where you are not directly involved in tax evasion. Instead, you aid or abet or may be a party to such an evasion. Furthermore, it also includes cases where you do not attend summons or produce documents. For that ,you shall be liable to pay a penalty which may extend to Rs 25,000.