Query of the day Archive - Page 5 of 5

October 11, 2022

Category : GST

Payment in Instalments

Radha & Co. LLP has declared the tax liability of INR 10 Cr in GSTR-1 but could not pay the same in GSTR 3B. Now it wishes to pay the same in instalments. Can it do so?

As per the law, the amount due as per the liability self-assessed in any return can not be paid in the instalments. Liability declared in GSTR 1 is not the liability self-assessed in return. Therefore Radha & Co. LLP can file the application in DRC-20 seeking an extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in installments in accordance with the provisions of section 80.

Manish Gupta

October 10, 2022

Category : GST

Penalty on wrong classification

Madhusudan Ltd. paid the tax of 5% on the supply of goods. Later on, while conducting the audit u/s 65, the proper officer pointed out in the observation letter that it was subject to 18%. The company has paid the difference of tax along with the interest and informed the proper officer. The proper officer has issued the notice to pay the penalty. Whether issuance of notice by the proper officer to pay the penalty is correct?

If it is the case of applicability of section 73, then it is not correct to demand the penalty.

It has to be established that tax has been short-paid for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax.

Pooja Patwari

October 9, 2022

Category : GST

Price inclusive of tax or exclusive of tax

Krishna Ltd. has entered into an agreement with Sudama Ltd. showing INR 10 Cr as the agreement value. Krishna Ltd. has treated it as inclusive of tax and issued the tax invoice accordingly. Is this the correct view?

Here agreement value is the transaction value that is subject to tax and can not be treated as inclusive of tax.

Krishna Ltd. is liable to pay the tax on INR 10 Cr and it can not be treated as inclusive of GST.

Vivek Laddha