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CS Executive · Tax Laws and Practice · Procedural Compliance under GST

A registered person made an error apparent on the face of record in a return filing document, without fraudulent intent or gross negligence. Which tax amount involved would make it a 'minor breach' for which no penalty may be imposed under section 126 of the CGST Act, assuming the penalty is not a fixed sum or fixed percentage?

Rs 4,500 qualifies, because a breach is minor only when the tax involved is less than five thousand rupees. An amount of exactly Rs 5,000 does not qualify since it is not less than that figure. With an easily rectifiable error and no fraud, no penalty is imposed.

  1. ARs 4,500Correct
  2. BRs 5,000
  3. CRs 7,500
  4. DRs 10,000

Explanation

Section 126 treats a breach as minor if the tax involved is less than five thousand rupees. Rs 4,500 is below that, while Rs 5,000 is not less than five thousand, and higher amounts clearly exceed it. The error apparent on record is easily rectifiable, so no penalty applies.

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