Big relief for GST taxpayers: Protection against arbitrary arrest and coercion by GST officers; CBIC changes arrest and bail guidelines under GST

economictimes.indiatimes.com:

Goods and Service Tax (GST) proper officer can't arbitrarily arrest a GST registered person due to a recent amendment in GST arrest instructions. Moreover, now GST proper officers have to explain to the taxpayers about the 'grounds of arrest' and also obtain a written acknowledgement from them about their understanding of the explanation.

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The Goods and Services Tax Investigation wing has amended para 4.2.1 of its instruction dated August 17, 2022. Amended para 4.2.1 now reads as follows: «The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo.» A notification intimating this amendment in guidelines for arrest and bail in relation to offences punishable under CGST Act, 2017 was published on January 13, 2025 by Central Board of Indirect Taxes and Customs (CBIC).

Read below to find out how this new amendment can help you.

Effective implementation of these guidelines will need awareness among businessmen

According to SR Patnaik, Partner (head — taxation), Cyril Amarchand Mangaldas, «This Instruction is expected to reduce arbitrary detentions, which was used as a coercive tool against taxpayers to admit liabilities. These