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Proposal to decriminalise offences under GST law underway

  • | Divita S Gupta

Proposal to decriminalise offences under GST law underway

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.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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