Mr. Dinesh, an unregistered person is selling its products through Buykart, a registered e-commerce operator. On the basis of inspection by the GST…

(a) Answer (a) (i) Penalty leviable on Mr. Dinesh Mr. Dinesh is liable to a penalty, for intra-State supply: Higher of: (a) ₹ 10,000 or (b) Amount equivalent to the tax evaded Thus, amount of penalty in the given case is [9% of 12,00,000] = 1,08,000 each under CGST and SGST for inter-State supply: Higher of: 20,000 or Amount equivalent to the tax evaded Thus, amount of penalty in the given case is [18% of 3,00,000] = 54,000 IGST Total penalty leviable on Mr. Dinesh is 2,70,000 (1,08,000 +1,08,000 + 54,000) (ii) Penalty leviable on Buykart Since Buykart allows an unregistered person (other than those exempted by notification) to make supply through it 15 , he is liable to a penalty, for intra State supply: Higher of: (a) ₹ 10,000 or (b) Amount equivalent to the tax evaded Thus, amount of penalty in the given case is [9% of 12,00,000] = 1,08,000 each under CGST and SGST for inter State supply: Higher of: (a) ₹ 20,000 or (b) Amount equivalent to the tax evaded Thus, amount of penalty in the given case is [18% of 3,00,000] = 54,000 IGST Total penalty leviable on Buykart is 2,70,000 (1,08,000 + 1,08,000 + 54,000) (iii) Penalty leviable on Mr. Ravi Since Mr. Ravi (CFO of Buykart) failed to appear before the proper officer, penalty up to 25,000 each under CGST and SGST or up to 50,000 under IGST is leviable. General disciplines related to penalty as given in section 126 are to be adhered to while imposing penalty on Mr. Ravi. 15 It is assumed that Mr. Dinesh has not availed exemption under Notification No. 34/2023 CT dated 31.07.2023. Thus, he is not eligible to make supplies through e-commerce operator since he is unregistered. In that case, Buykart will be liable to penalty under clause (i) of section 122(1B) of the CGST Act, 2017 as given above. However, if it is assumed that Mr. Dinesh has availed exemption under Notification No. 34/2023 CT dated 31.07.2023, he has an enrolment number though which he is allowed to make intra-State supply (but not inter-State supply) of goods through e-commerce operator even though he is unregistered. Thus, in that case, Buykart will be liable to penalty under clause (ii) of section 122(1B) of the CGST Act, 2017 allows a person not otherwise eligible to make inter-State supply to make said supply through it. In both cases, amount of penalty will remain same.