Proposal to decriminalise offences under GST law underway
- | Divita S Gupta
After decriminalising various offences under the Company law, the Finance ministry is looking to decriminalise offences under the Goods and Services Tax system. Representatives from the Central Board for Indirect Taxes and Customs have been appointed to consult with stakeholders and gather inputs from the industry.
Existing GST law allows individuals under investigation to be arrested and be held in judicial custody in cases of tax evasion and tax fraud. This is applicable even if another party misuses input tax credit provisions. This new proposal is expected to decriminalise violations involving minor technical and procedural defaults, shortcomings in CSR reporting, inadequacies in board reports, defaults in filing and delay in holding of annual general meetings.
Furthermore, a majority of the compoundable offences sections are likely to be moved under the internal adjudication mechanism.