Henry & Co. self-assessed its CGST liability as 90,000 for the month of April, but failed to make the payment. Subsequently the Department…

Due date for payment of tax for the month of April is 20 th May. Where self-assessed tax is not paid within 30 days from due date of payment of such tax, penalty equivalent to 10% of tax or - 10,000, whichever is higher, is payable. Thus, option to pay tax within 30 days of issuance of SCN to avoid penalty, is not available in case of self-assessed tax. Since in the given case, Henry & Co. has not paid the self-assessed tax within 30 days of due date [i.e. 20 th May], penalty equivalent to: (i) 10% of tax, viz.,9,000 (10% of 90,000) or (ii) 10,000, whichever is higher, is payable by him under the CGST Act, 2017. Equivalent amount of penalty is payable under the SGST/UTGST Act 2017. Hence, the stand taken by the Department that penalty will be levied on Henry & Co. is correct, but the amount of penalty of 45,000 under the CGST Act, 2017 is not correct.