GST What is meant by the term penalty?

Raju Choudhary

Administrator
Staff member
#1
Ans. The word “penalty” has not been defined in the CGST/SGST Act but judicial pronouncements and principles of jurisprudence have laid down the nature of a penalty as:
  • a temporary punishment or a sum of money imposed by statute, to be paid as punishment for the commission of a certain offence;
  • a punishment imposed by law or contract for doing or failing to do something that was the duty of a party to do.