Question ID :
44912
PENALTY UNDER SECTION 74 OF GST ACT
Our client has received a GST notice under Section 74 of the CGST Act for reversal of input tax credit on purchases made from a bill trader (non-existent dealer). On receipt of the statement in Form DRC-01A, the client has already discharged the tax along with applicable interest and a penalty of 15%, as provided under Section 74(5).
However, the Proper Officer is now insisting on payment of 100% penalty. Plz Clarify
posted by
PONNUSAMY R
on
Aug 21 2025 12:00AM