CS Executive · Tax Laws and Practice · Procedural Compliance under GST
Under section 126 of the CGST Act, when a person voluntarily discloses a breach to the officer before the officer discovers it, what may the proper officer do?
The proper officer may treat the voluntary disclosure, made before the officer discovers the breach, as a mitigating factor while quantifying the penalty. It is a discretionary consideration, not an automatic waiver of the penalty, and it certainly does not increase the penalty.
- AMust waive the entire penalty
- BMust double the penalty
- CConsider the disclosure as a mitigating factor when quantifying the penaltyCorrect
- DIgnore it because disclosure has no relevance
Explanation
Section 126(5) says the proper officer may consider voluntary disclosure made before discovery as a mitigating factor in quantifying the penalty. It is discretionary and not an automatic waiver, and it is not ignored or penalized.
Did you get it right without looking?
One question tells you little. A timed set on Procedural Compliance under GST shows your real accuracy, how long you take and where you lose marks.
More Procedural Compliance under GST questions
- Mehta Traders, a registered person, omitted a digit in an invoice number, an error apparent on the face of record, without fraud or gross ne…
- Meera Exports obtains a final order from an Appellate Tribunal directing a refund, and the order has attained finality. She files an applica…
- Which of the following is a requirement for imposing a penalty under the general disciplines in section 126 of the CGST Act, 2017?
- During a search under section 67 of the CGST Act, access to an almirah and electronic devices of a taxable person is denied. Which statement…
- A dealer fails to comply with a provision of the CGST Act for which the Act provides a penalty of a fixed sum of Rs 10,000. The tax involved…
- Ananya Textiles Pvt Ltd has a principal place of business in Surat and an additional place of business in Jaipur, both shown in its GST regi…