Nowadays Social Media is abuzz with an Alleged Show Cause Notice for Penalty for non-issuance of Tax Invoice, issued under APGST Act, 2017 by Anantapuram Division, Dharmavaram Circle, Department of State Tax, Government of Andhra Pradesh dated 05.09.2017 by which department has proposed to levy a Penalty of Rs. 20000/- for Tax Evasion of Rs. 15.

We have not confirmed the issue of same from concerned department so we cannot comment if the alleged show cause notice has actually been issued by the department or not. But if the same is been issued by department than it’s a very wrong and dangerous precedent and a signal for dealers on what they can expect in coming days.

Such notices are not in right taste at this stage of GST implementation when Government is rejecting GST Registration for their own mistakes and fails to register the dealers even after a month of application.

Further update- Department has even collected the penalty amount too from the Tax Payer on 08.09.2017. We have copy of Challan with us which was paid online.

Readers are requested to share their views on impugned Show Cause Notice. Copy of the Show Cause Notice doing rounds on Social Media is as follows :-

GST SCN

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63 responses to “Rs. 20000 Penalty for GST of Rs. 15”

  1. This is in relation to interest paid for under construction property under 24(2). In case of investment made under 54F, if possession is not given within 3 years, even then capital gain exemption is allowed.

    But what about interest exemption u/s 24(2), whether one can claim exemption even if one does not get possession in three years time.

    Also, in cas eof settlement with the builder, if one gets some delayed interest which is less than what he had paid, whether one can claim exemption for the difference . if yes, then under which section.

  2. aanAnd Mineeyar 431001 MH says:

    As per rule 2(b) of tax invoice dealer has to right to not issuing of invoice, if customer not require upto rs.200/-.
    But if dealer is charging the tax to customer, it is his duty to make invoice. Without it how can he calculate the payable tax, return. By not generating invoice dealer may show adjusted amount of sales which may differe than actual sales. Thus this action means to collect the tax from customer n show low amt of sales n pay tax as per working not as per actual. Then the action creates reaction from dept.

  3. JATIN says:

    I think this penalty is not a valid penalty under section 126(1) CGST act No officer under this Act shall impose any penalty for minor breaches of tax
    regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence.
    Explanation.––For the purpose of this sub-section,––
    (a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is less than five thousand rupees

  4. John says:

    Some of them are collecting GST without removing the previous taxes.
    Some of them are collecting GST even without getting a GST No.
    Cyclestands of most of the railway stations are collecting GST without a GST No.
    Now who will take action against them. And what penalty they are going levy on them ?

  5. S.Muthu Vijayan says:

    This is Draconian at the initial stage of GST implementation.

  6. g c pramanik says:

    such kind of bureaucrats want to give massage among the public that implement of GST is against the people and against the Democracy therefore they are misusing the power conferred by the Govt.
    However the rule maker is also in wrong , therefore penalty amount should not exceed equal to tax evasion e.i. Rs.15.00

  7. S A KANAKA RAJ says:

    SAME DEPARTMENT PERSON, TODAY VISITED THE SAME PREMISES AND MAKING HARASSING TO THE SHOP PEOPLE, AND FORCE TO TAKE SIGNATURE ON THE STATEMENT AND HE TELLING TO THE CUSTOMER OF THE SHOP NOT TO PURCHASE IN THIS SHOP. STILL NOW WHY THE AP GOVT NOT TAKEING THE ACTION AGAINST HIM. WHAT THE MEDIA DOING.

  8. A K ABROL says:

    THIS IS HIGH HANDEDNESS ON THE PART OF DEPARTMENT TO PUNISH THE ASSESSEE

  9. B S NEGI says:

    Actually State tax officer are not yet aware about GST, They are still in haven of old regime.

    Need them proper education on GST, if this SCN is correct-

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