GST: India considering revoking arrests for evasions below ₹3 crore
Goods and Services Tax (GST) evasion, as per a report by The Economic Times. The proposal aims to elevate the threshold to ₹3 crore from the existing ₹2 crore, as part of an initiative to decriminalise certain aspects of tax evasion, reducing undue pressure on businesses and fostering a more favourable environment for conducting operations, it added. The Central Board of Indirect Taxes and Customs (CBIC), the apex body governing indirect taxes under the central government, is actively considering amendments to streamline the process of issuing summonses, as per the report.
Sources told the paper the contemplation revolves around making summons more restrictive and permitting their issuance only under specific conditions. Also Read: Centre Notifies 18% GST on Corporate Guarantees Amidst discussions surrounding these changes, voices from the industry have raised concerns about the severity of existing penal provisions. They argue that the current law's stringent nature could potentially impede business operations.
Advocates for industry reforms are pushing for alterations in the penal code, urging for a more balanced approach towards regulation. A deliberation on this proposal is expected to be presented before the GST Council soon. Any alterations to the central and integrated GST Acts could align with the Centre's vote on account preceding the upcoming general elections.
Concurrently, individual states are poised to make separate amendments to their respective GST Acts. A senior government official highlighted that discussions involved increasing the threshold for initiating criminal proceedings to ₹3 crore, while industry representatives had pitched for ₹5 crore. Presently, Section 132 of the Central GST (CGST) Act
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