Penalty u/s 129 a
This query is : Resolved
13 February 2020
Sir,
We have paid 18% (CGST+SGST) tax and 18% penalty under section 129 a (Due to difference in place of supply as per invoice and e-way bill). Whether I have to pay out put tax on the same item while filing 3B
We have paid 18% (CGST+SGST) tax and 18% penalty under section 129 a (Due to difference in place of supply as per invoice and e-way bill). Whether I have to pay out put tax on the same item while filing 3B
17 February 2020
In my view, you need not pay tax again while filing GSTR 3B as the wordings of sec 129 is TAX PAYABLE & PENALTY.
For a single supply, a person need not pay tax twice.
For a single supply, a person need not pay tax twice.
18 February 2020
Thanking you for reply
In-order to match turnover between 3B and GSTR1, we have to show outward supply in GSTR 3B and pay tax once again. Is any solution there?
In-order to match turnover between 3B and GSTR1, we have to show outward supply in GSTR 3B and pay tax once again. Is any solution there?
10 August 2024
When dealing with the penalty and tax adjustments under Section 129 of the Goods and Services Tax (GST) Act in India, especially in cases where there is a discrepancy between the place of supply in the invoice and e-way bill, it’s crucial to understand the implications for GST returns and compliance. Here’s a breakdown of how to handle such situations:
### **1. **Understanding Section 129 and Penalty**
**a. **Section 129 of GST:**
- **Penalty Provisions:** Section 129 of the GST Act deals with the detention, seizure, and release of goods and conveyances in transit. It also provides for penalties if there is a discrepancy or non-compliance, such as mismatches between the invoice and e-way bill.
- **Penalty Payment:** When a penalty under Section 129 is paid, it is typically paid in addition to the tax that is already due.
### **2. **Implications for GST Returns**
**a. **Tax Payment:**
- **Tax Already Paid:** If you have already paid tax (18% CGST + 18% SGST) on the item and have also paid the penalty, the penalty amount is a separate compliance issue and does not directly affect the output tax liability.
- **No Double Taxation:** You should not pay tax again on the same item while filing your GST returns. The tax already paid should be sufficient to cover your liability.
**b. **Filing GST Returns:**
- **GSTR-3B:** Ensure that the outward supply is correctly reflected in your GSTR-3B. The output tax liability should match the total taxable value reported.
- **GSTR-1:** Your GSTR-1 should accurately reflect the outward supplies, including any amendments if applicable. This will help in reconciling your GSTR-1 with GSTR-3B.
### **3. **Reconciliation and Compliance**
**a. **Reconcile Returns:**
- **Match Turnover:** Ensure that the turnover reported in GSTR-3B matches with GSTR-1. Discrepancies in the place of supply should be corrected in your returns if needed.
- **Adjustments:** If there were any errors or discrepancies that caused a mismatch, ensure that appropriate adjustments are made in the returns. If you reported the outward supply correctly in GSTR-1 and GSTR-3B, additional tax payment is generally not required.
**b. **Documentation and Reporting:**
- **Document Payment of Penalty:** Keep all documentation related to the payment of the penalty under Section 129. This includes the challan, penalty notice, and any communication with tax authorities.
- **Reporting Penalty:** Penalty under Section 129 is not a part of your tax liability but rather a compliance issue. It does not affect the reporting of output tax in GSTR-3B.
### **4. **Consult Tax Professionals**
**a. **Expert Guidance:**
- **Consult a GST Expert:** Given the complexity of GST compliance and penalty provisions, consulting a GST expert or tax professional is advisable. They can provide specific guidance based on your situation and ensure that your returns are filed correctly.
- **Resolve Discrepancies:** They can also help in resolving any discrepancies or issues with the GST returns and provide advice on managing such compliance issues.
### **Summary**
- **Tax Already Paid:** Since you have already paid the tax (CGST + SGST) and the penalty under Section 129, you should not have to pay the tax again for the same item in your GST returns.
- **Filing GST Returns:** Ensure that your GSTR-3B and GSTR-1 are accurately reflecting the transactions and comply with the GST regulations.
- **Consult Experts:** Seek advice from GST professionals to handle reconciliation and compliance issues effectively.
Properly managing and reconciling your GST returns will help avoid any further issues and ensure compliance with the tax regulations.
### **1. **Understanding Section 129 and Penalty**
**a. **Section 129 of GST:**
- **Penalty Provisions:** Section 129 of the GST Act deals with the detention, seizure, and release of goods and conveyances in transit. It also provides for penalties if there is a discrepancy or non-compliance, such as mismatches between the invoice and e-way bill.
- **Penalty Payment:** When a penalty under Section 129 is paid, it is typically paid in addition to the tax that is already due.
### **2. **Implications for GST Returns**
**a. **Tax Payment:**
- **Tax Already Paid:** If you have already paid tax (18% CGST + 18% SGST) on the item and have also paid the penalty, the penalty amount is a separate compliance issue and does not directly affect the output tax liability.
- **No Double Taxation:** You should not pay tax again on the same item while filing your GST returns. The tax already paid should be sufficient to cover your liability.
**b. **Filing GST Returns:**
- **GSTR-3B:** Ensure that the outward supply is correctly reflected in your GSTR-3B. The output tax liability should match the total taxable value reported.
- **GSTR-1:** Your GSTR-1 should accurately reflect the outward supplies, including any amendments if applicable. This will help in reconciling your GSTR-1 with GSTR-3B.
### **3. **Reconciliation and Compliance**
**a. **Reconcile Returns:**
- **Match Turnover:** Ensure that the turnover reported in GSTR-3B matches with GSTR-1. Discrepancies in the place of supply should be corrected in your returns if needed.
- **Adjustments:** If there were any errors or discrepancies that caused a mismatch, ensure that appropriate adjustments are made in the returns. If you reported the outward supply correctly in GSTR-1 and GSTR-3B, additional tax payment is generally not required.
**b. **Documentation and Reporting:**
- **Document Payment of Penalty:** Keep all documentation related to the payment of the penalty under Section 129. This includes the challan, penalty notice, and any communication with tax authorities.
- **Reporting Penalty:** Penalty under Section 129 is not a part of your tax liability but rather a compliance issue. It does not affect the reporting of output tax in GSTR-3B.
### **4. **Consult Tax Professionals**
**a. **Expert Guidance:**
- **Consult a GST Expert:** Given the complexity of GST compliance and penalty provisions, consulting a GST expert or tax professional is advisable. They can provide specific guidance based on your situation and ensure that your returns are filed correctly.
- **Resolve Discrepancies:** They can also help in resolving any discrepancies or issues with the GST returns and provide advice on managing such compliance issues.
### **Summary**
- **Tax Already Paid:** Since you have already paid the tax (CGST + SGST) and the penalty under Section 129, you should not have to pay the tax again for the same item in your GST returns.
- **Filing GST Returns:** Ensure that your GSTR-3B and GSTR-1 are accurately reflecting the transactions and comply with the GST regulations.
- **Consult Experts:** Seek advice from GST professionals to handle reconciliation and compliance issues effectively.
Properly managing and reconciling your GST returns will help avoid any further issues and ensure compliance with the tax regulations.
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