Section 126 of CGST Act, 2017 – General Disciplines Related to Penalty
Section 126 of CGST Act, 2017 – General Disciplines Related to Penalty Act: Central Goods and Services Tax Act, 2017 Chapter: XIX – Offences and Penalties Section Covered: Section 126 Effective From: 01st July 2017 🔎 Introduction Section 126 of the CGST Act, 2017 lays down the general principles (or disciplines) that every GST authority must follow while imposing penalties under the Act. The objective of this provision is to ensure that penalties are imposed fairly, reasonably, and proportionately , instead of being levied mechanically for every procedural lapse. This section reflects the legislative intent that penalty is a consequence of a deliberate or significant contravention , and not merely of every minor mistake or technical breach. 📜 Bare Provision – Section 126 Section 126 provides that: (1) No substantial penalty for minor breaches No officer shall impose a substantial penalty for— A minor breach of tax regulations or procedural requirements; or An ...