MINOR BREACH AND MAJOR BREACH UNDER CGST ACT, 2017 - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

5. MINOR BREACH AND MAJOR BREACH UNDER CGST ACT, 2017 5.1 In context of Penalties, a minor breach is defined as a situation where the amount of tax involved is less than Rs. 5,000. Additionally, a minor breach also includes easily rectifiable documentation errors/omission. Under existing rules, minor breaches do not attract substantial GST penalties. 5.2 In case the tax amount involved exceeds Rs. 5,000, the situation is classified as a major breach under the CGST Act, 2017 and penalties under CGST Act, 2017, including jail sentences may be applicable depending on the tax amount consideration. The minor vs. major breach clause is designed to help businesses, especially those with small turnovers including SME by ensuring that they do not get penalized for genuine errors.