No penalties for minor tax breaches under Section 126 CGST Act 2017; fairness and proportionality emphasized.

Under Section 126 of the CGST Act 2017, no penalties are imposed for minor breaches or procedural errors in tax documentation if they are easily rectifiable without fraudulent intent or gross negligence. A breach is minor if the tax involved is less than five thousand rupees. Penalties must be fair, case-specific, and proportional to the breach's severity. Individuals must be given a chance to be heard before penalties are imposed, and the nature of the breach and applicable laws must be specified. Voluntary disclosure of breaches can mitigate penalties, except when penalties are fixed sums or percentages.

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