GST UPDATE

???? CA. Praveen Sharma Ki Desk Se ?????

Draft  Reply to Notice Under Section 125 for Penalty Regarding Rule 86B Non-Compliance

?Inadvertent Non-Compliance : The non-compliance with Rule 86B occurred unintentionally. While filing GST returns, the entire tax was paid through Input Tax Credit (ITC) without considering the requirement to pay at least 1% of tax in cash under Rule 86B. This was a genuine oversight, not an attempt to evade tax.

?Immediate Correction: After receiving the notice, we thoroughly reviewed our compliance processes and have implemented corrective measures to ensure adherence to Rule 86B in future tax periods.

 ?No Revenue Loss : There was no loss to the exchequer as the full tax liability was discharged using legitimate ITC. The non-compliance was purely due to a misinterpretation of the provisions, with no intent of tax evasion or fraud.

 ?Grounds for Waiver: As per Section 126 of the CGST Act, penalties should not be imposed for minor, non-fraudulent errors. Considering our prompt corrective actions and the lack of revenue loss, we respectfully request a waiver of the penalty imposed under Section 125.

?Request: In light of the above, I kindly request the waiver of the penalty and thank you for your consideration.

CA. Sharma Praveen

+91-9871530610