Summon issued regarding ITC claimed on fake invoices. Theteafter ITC reversed by taxpayers voluntarily through DRC03 without issue of SCN. The interest and penalty was not paid in DRC 03 quoting clause 2 of instruction no 1/2022-23 dated 25/05/2023. Now department issued notice asking for pymt of intt n penalty.
Whether penalty will be imposed in case of voluntary reversal of ITC w/o issue of SCN?
3 Replies
Jamil Ahmed
(62 Points)
Replied 08 June 2023
This issue is not covered under the instruction aa mentioned or Section 75(12). Interest and penalty imposable.
Rajendra Prasad
(Employee Private)
(1867 Points)
Replied 08 June 2023
In my knowledge and experience, as per Section 74(5) any liability has been discharged before issuance of Notice, GST along with applicable interest and penalty 15% has to be payable. If tax paid after issuance of Notice penalty is 25% as per Sec 74(8) and taxes paid after passing order and with in 30 days penalty will be 50% as per Sec 74(11)
Else 100% penalty is applicable as per Section 122.
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