Sec 126 of CGST Act with regard to Penalties

[Krishna Murthy]

Sir, Sec 126 of CGST Act, General disciplines related to penalty, Sub Sec 6 says that the provision does not apply to a case where penalty is fixed as percentage or fixed amount. But, what could be a case where penalty is not fixed as percentage or fixed amount as penalty is always certain percentage of tax or fixed based on default committed.

AI Summary

Debate on Section 126 of CGST Act: Discretionary Penalties vs. Fixed Penalties in Subsection 6. A discussion on Section 126 of the CGST Act focuses on its provisions related to penalties, particularly Subsection 6, which excludes cases where penalties are fixed as a percentage or a fixed amount. Participants debate the scope and application of this section, noting it allows discretion in imposing penalties based on case specifics, unlike Sections 73, 74, and 125, which prescribe fixed penalties. The discussion highlights the broad authority granted to the department under Section 126 for imposing penalties not covered by other sections, emphasizing the need for careful application to avoid unjust penalties.