ABC Ltd., the owner of the goods, sends goods through Rajat Transport Agency from Jodhpur to Delhi valuing ₹ 6,00,000 which is exempted under the GST law. During the transit, the proper officer has intercepted and found
CS Professional · Advanced Tax Laws · PYQS · June 2025
ABC Ltd., the owner of the goods, sends goods through Rajat Transport Agency from Jodhpur to Delhi valuing ₹ 6,00,000 which is exempted under the GST law. During the transit, the proper officer has intercepted and found contravention of GST provisions. He detained the goods and the conveyance. Determine the penalty payable under section 129 of CGST Act, 2017 for release of detained goods: If ABC Ltd. comes forward for payment of tax and penalty,
Answer & Explanation:
If ABC comes forward for payment of tax and penalty: Where owner of the goods comes forward for releases of goods, penalty equivalent to 2% of value of goods or ₹ 25,000 whichever is less is required to be paid. Accordingly, ₹ 12,000 (lower of 2% of ₹ 6,00,000 or ₹ 25,000) is to paid as penalty for release of goods.
Topics: GST
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