Is GST irregularities a crime? Brainstorming by the council on 17th December.

The central government had in September said that GST officials can initiate prosecution in cases of GST malpractices, where tax evasion or misuse of input tax credit exceeds Rs 5 crore.

It is possible to discuss its law in the upcoming GST Council meeting to be held on 17th December 2022. According to the information, the council can discuss to bring the irregularities out of the category of crime under the GST law. Along with this, the limit for prosecution can be considered to be increased from the existing Rs.5 crore to Rs.20 crore.

According to officials, one of the various proposals before the council is to increase the threshold amount for initiating criminal action under GST. Under this, initiation of criminal action can be considered only in case of irregularities of more than Rs 20 crore. Also, in case below the prescribed limit, the property of the trouble makers will not be attached.

The GST Council may also consider removing the punishable offenses that have already been brought under the Indian Penal Code (IPC) from the GST Act. Its purpose is to make the law more taxpayer friendly. Officials said the legal committee of GST officers has finalized changes to section 132 of the GST Act in an effort to decriminalize the law.

Amendment to the Central GST Act can be introduced in the winter session of Parliament starting from December 7 after the GST Council approves the proposal to bring GST law into non-criminal category. States will need to amend their GST law after Parliament's approval.

Officials also said that various suggestions have been received to reduce the GST on health insurance premium from the existing 18%.

Source - livehindustan.com

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GST Fraud

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Criminal Offence

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Prosecution under GST

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