Sir
Our client have made payment for release of goods under section 129 on account of waybill not generated/ or generated but expired.
What should done for such payment. This payment is lying in our cash ledger both in Tax and penalty head.
1.Should this cash be utilized for normal tax liability arising out of 3B?
2. Please clarify for Section 17(5)(i) with respect to block credit where payment made under section 74, 129 and 130 in this scenario.
The Order of demand of tax and penalty under section 129 is issued in FORM GST MOV09 which is uploaded on the common portal and the demand accruing from the order is added in the electronic liability register and, upon payment of the demand, such register is credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.
Thus you should check the electronic liability register and demand of tax and penalty standing therein should be paid through electronic cash ledger.
2. As rightly pointed out ITC cannot be availed in r/o tax paid u/s 129 as same is blocked.
Team Clearmytax.in