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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

A registered person is found to have profiteered ₹6,50,000 and does not deposit it within thirty days of the order. What penalty is payable under Section 171(3A)?

The penalty is ₹65,000. Section 171(3A) fixes it at ten per cent of the profiteered amount, and 10 per cent of ₹6,50,000 is ₹65,000. Because the amount was not deposited within thirty days of the order, the proviso giving relief from penalty does not apply.

  1. A₹65,000Correct
  2. B₹6,500
  3. C₹6,50,000
  4. D₹32,500

Explanation

The penalty is ten per cent of the profiteered amount: 6,50,000 × 10% = ₹65,000. Check: 65,000 × 10 = 6,50,000. The proviso exemption is unavailable because the deposit was not made within thirty days. ₹6,500 results from taking one per cent.

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