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

Ravi Traders is found by the Authority to have profiteered Rs 5,00,000. It deposits the profiteered amount 45 days after the date of the order. Under section 171(3A), what is the penalty leviable on it?

The penalty is Rs 50,000. It equals ten per cent of the Rs 5,00,000 profiteered. The waiver is available only if the amount is deposited within thirty days of the order, and a deposit on day 45 misses that window.

  1. ARs 50,000Correct
  2. BNil
  3. CRs 5,00,000
  4. DRs 25,000

Explanation

The penalty is ten per cent of the profiteered amount: 10% of Rs 5,00,000 = Rs 50,000. The relief in the proviso applies only if the amount is deposited within thirty days of the order. Deposit at 45 days is late, so the penalty applies in full.

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