It has been reported that, under the Goods and Services Tax (GST) regime, the GST Council is likely to consider removing the power of GST officials to make arrests and also seeking court approval for arrests.
The GST Council is the apex body that takes key decisions related to GST. The council’s 57th meeting is scheduled to be held in New Delhi on Oct. 7.
Section 69 of the Central GST Act...: Sources familiar with the meeting said that the GST Council is likely to consider major changes in the implementation of GST. Among these, it is likely to mainly consider making changes to Section 69 of the Central GST Act.
That section grants the GST Commissioner the authority to permit an arrest if the legal conditions are currently met and there are reasonable grounds to believe that specified offenses have been committed. If this section is amended, GST officials will not have the power to arrest. Permission from the court would be required to arrest a person.
Raised to Rs. 5 crore...: The GST Council is set to consider raising the current threshold for filing criminal cases in instances of GST irregularities above Rs. 1 crore to Rs. 5 crore.
In cases related to deliberate tax evasion or fraud, criminal proceedings will continue to be initiated through the court.
If this change is introduced, criminal action will be taken only in cases involving large sums. Issues involving smaller amounts will be resolved through tax collection, interest, and penalties.
It may also be considered to relax the provisions for 24 offences in the GST law that lead to criminal proceedings, completely remove 9 offences, and continue 11 offences as they are.
Furthermore, it has also been proposed to remove the rule on the minimum prison sentence in connection with GST violations. As a result, the court will not be required to impose a prison sentence. In each case, there will be an option to impose a fine. Similarly, the maximum prison sentence for offenses that are moderate rather than major crimes may be reduced from 3 years to 2 years.
Gold imported by banks...: The GST Council is also likely to consider the issue of refunds, given that gold, silver, and platinum imported by banks and authorized agencies are exempt from integrated GST (IGST).
The sources said that the GST Council may also consider simplifying GST registration, speeding up refunds, easing ITC procedures, changing notices issued seeking explanations and penalties, and waiving late fees charged to small taxpayers.