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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 supplier is held to have profiteered Rs 7,50,000 and does not deposit the amount within thirty days of the Authority's order. Under Section 171(3A), what penalty is leviable?

The penalty is Rs 75,000, being ten per cent of the profiteered amount of Rs 7,50,000. Since the amount was not deposited within thirty days of the order, the proviso to Section 171(3A) does not apply and the penalty is leviable.

  1. ARs 75,000Correct
  2. BRs 7,50,000
  3. CRs 3,75,000
  4. DRs 1,50,000

Explanation

The penalty equals ten per cent of the profiteered amount: 10% x 7,50,000 = Rs 75,000. The proviso exemption is lost because the deposit was not made within thirty days. Rs 3,75,000 wrongly uses 50%.

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