229.            A Ltd., supplied thermal printers worth Rs.100,000 in the month of March 2017 on which GST is charged @ 12%. It further came to notice that the printer was misclassified under wrong head “printers” & shall be chargeable @ 18% under the head “ other printers-8443” resulting in tax short paid by Rs.6,000. Determine what shall be the penalty imposed if the interest is payable on such tax short paid @ 18 % & the tax short paid was accidental.

The assessee makes the following payment on 16.06.2017.

(i) if tax paid = 6,000, interest @ 18%

(ii) if tax paid= 5,000, interest paid =140

(iii) if tax paid = 6,000, no interest is paid

(iv) if tax paid =6,000, interest paid = 119

As per section 73(5) of the CGST Act, taxable person shall pay before issue of SCN the following amounts:

Time period: due date of payment of tax till actual date of payment of tax

                   i.e., from due date 20.4.2017 till 16.6.2017 = 57 days.

(i) The taxable person has paid full amount of tax, interest mentioned above. The proceeding is deemed to be concluded.

(ii) Tax paid is short by 1,000 & interest by 29. The assessee shall pay the amount before issue of show cause notice otherwise proper officer may issue show cause notice demanding the tax=1000 & interest=29.

(iii)                  The tax paid is 6,000 but the interest is not paid. The assessee shall pay the interest amount Rs.169 before issue of SCN or the proper officer may issue show cause notice demanding interest =169.

(iv) The tax paid is 6,000 but interest is short paid by Rs 50 (169-119). The proper officer shall issue show cause notice demanding interest Rs 50.