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

The Authority examined a registered supplier and concluded that it had profiteered Rs 4,00,000. Under Section 171(3A), the supplier deposits the profiteered amount 20 days after the date of the Authority's order. What is the penalty payable?

The penalty is nil. Although the penalty would normally be ten per cent of the profiteered amount, the proviso to Section 171(3A) exempts the person if the profiteered amount is deposited within thirty days of the order, and here the deposit was made in twenty days.

  1. ARs 40,000
  2. BRs 4,00,000
  3. CRs 20,000
  4. DNilCorrect

Explanation

Penalty is 10% of the profiteered amount, i.e. Rs 40,000. But the proviso says no penalty is leviable if the profiteered amount is deposited within thirty days of the date of the order. Deposit at 20 days is within 30 days, so the penalty is nil. Rs 40,000 ignores the proviso.

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