Amended and updated notes on section 126 of CGST Act, 2017. Detail discussion on provisions and rules related to general disciplines related to penalty.
Chapter XIX (Sections 122–138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 126 of CGST 2017 provides for general disciplines related to penalty.
Recently, we have discussed in detail section 125 (General penalty) of CGST Act 2017. Today, we learn the provisions of section 126 of Central GST Act 2017.
Section 126 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 126 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XIX |
| Chapter Name | Offences and Penalties |
| Section No. | 126 |
| Section Name | General disciplines related to penalty |
| Updated 2024 Edition | GST Law Book PDF |
Section 126 of Central GST – General disciplines related to penalty1
Section 126 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 126(1) of CGST Act
Section 126(1): No officer under this Act shall impose any penalty for minor breaches of tax regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence.
Explanation: For the purpose of this sub-section, ––
- (a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is less than five thousand rupees;
- (b) an omission or mistake in documentation shall be considered to be easily rectifiable if the same is an error apparent on the face of record.
Section 126(2) of CGST Act
Section 126(2): The penalty imposed under this Act shall depend on the facts and circumstances of each case and shall be commensurate with the degree and severity of the breach.
Section 126(3) of CGST Act
Section 126(3): No penalty shall be imposed on any person without giving him an opportunity of being heard.
Section 126(4) of CGST Act
Section 126(4): The officer under this Act shall while imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature of the breach and the applicable law, regulation or procedure under which the amount of penalty for the breach has been specified.
Section 126(5) of CGST Act
Section 126(5): When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact as a mitigating factor when quantifying a penalty for that person.
Section 126(6) of CGST Act
Section 126(6): The provisions of this section shall not apply in such cases where the penalty specified under this Act is either a fixed sum or expressed as a fixed percentage.
- Section 126 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎