Section 57, The Goods and Services Tax Act, 2009

(1) No penalty is payable under this Part by a personwho has been compounded under section 87. (2) If a penalty under this Part has been paid and the Commissioner-General institutes proceedings under this Part in respect of the same act, the Commissioner-General shall refund the amount of the penalty paid, and the penalty is not payable unless and until the proceedings are terminated (3) The Commissioner-General may make an assessment of a penalty charged under this Part as if the penalty were GST- payable and may specify the date on which the penalty is payable, which shall not be less than 10 days from the date on which the notice of assessment was issued. 80 81 Interest on late payments. General provisions on payment of penalties. (4) A notice of an assessment of a penalty imposed under this Part shall be served on the person subject to the penalty and shall state the amount of the penalty payable, the provision under which it is payable, and the due date for payment, and on service of the notice– (a) the notice and the assessment are treated as if they were a notice and assessment of GST payable under this Act; (b) the amount of the penalty specified in the notice is treated as GST payable under this Act; and (c) the due date for payment is the date specified in the notice. (5) A person’s liability to pay a penalty under this Part arises on the making of an assessment by the Commissioner-General under subsection (4). (6) The time limit for assessing a penalty under this Part is– (a) if the amount of the penalty may be calculated by reference to the GST payable for a tax period, whether or not it has been calculated in that way, the same time limit as applies for assessing the GST to which the penalty relates; or (b) in any other case– (i) if the penalty is payable because the Commissioner-General has become aware of the act, within 3 years after the doing of the act; (ii) if the penalty is payable because of the failure to do an act, within 3 years after the Commissioner-General has become aware of such failure; (iii) if the penalty is payable because of the non-disclosure or incorrect disclosure by a person of information relating to that person’s liability to GST for a tax period, within 3 years after the person’s correct liability to GST has become final for that tax period. (7) Where under this Part a penalty is payable for each day, month, or other period during which a particular state of affairs exists or continues, the penalty is payable in full for part of the day, month or other period in which the state of affairs commences, continues or ends. (8) The Commissioner-General may, on application in writing by a person liable to pay a penalty under this Part, remit the penalty in whole or part if he is satisfied that there is good cause to do so and the application shall include the amount of penalty sought to be remitted and the reasons for the request. (9) The Commissioner-General shall with regard to any penalty remitted under subsection (8), notify the person who is the beneficiary of the remission in writing of the reasons for and the amount of the remission and where a person has applied in writing such remission shall be granted or granted in part or denied by notice in writing within 60 days of receipt of the request for remission.