We have received an order from the GST department to pay a penalty under Section 122(i)(ii) for issuing an invoice without the movement of goods pertaining to year 2017-18. The penalty amount is only Rs.1100.
Accepting this penalty feels wrong as we have not engaged in the activity alleged in the order.
We are now in a dilemma:
- On one hand, the amount is small (just Rs.1100). If we pay it to close the matter, we might be implying acceptance of an action we did not commit, which could lead to more action & penalties in the future for such acceptance.
- On the other hand, pursuing an appeal would be costly for opposing such a small penalty.
We would appreciate your guidance on how best to proceed in this situation.
CAclubindia
