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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

Under the general disciplines related to penalty in the CGST Act, 2017, a breach is treated as a 'minor breach' for which no penalty may be imposed (where the mistake is easily rectifiable and without fraudulent intent or gross negligence) if the amount of tax involved is:

A breach is a minor breach when the tax involved is less than five thousand rupees. In such cases, if the mistake is easily rectifiable and made without fraud or gross negligence, no penalty can be imposed under Section 126.

  1. ALess than five thousand rupeesCorrect
  2. BLess than ten thousand rupees
  3. CUp to twenty-five thousand rupees
  4. DLess than one thousand rupees

Explanation

The Explanation to Section 126(1) says a breach is a minor breach if the tax involved is less than five thousand rupees. The twenty-five thousand figure is the ceiling of the general penalty under Section 125, not the minor breach threshold.

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