In a major update to the penal provisions for inspection and search operations under the Goods and Services Tax (GST) regime, the Central Board of Indirect Taxes and Customs (CBIC), through Notification No. 20/2024 - Central Tax dated October 08, 2024, has made a crucial substitution in FORM GST INS-01. This amendment aligns certain penal provisions with the newly introduced Bharatiya Nyaya Sanhita, 2023 (45 of 2023).
Key Changes
The notification substitutes the earlier references to sections 179, 181, 191, and 418 of the Indian Penal Code (IPC) with the following sections from the Bharatiya Nyaya Sanhita, 2023:
- Section 214
- Section 216
- Section 227
- Sub-section (3) of section 318
These sections deal with similar offenses, such as misleading authorities, tampering with evidence, refusal to answer questions, and making false statements during inspections and search operations.
Before and After Comparison
- Before: Any attempts to mislead, tamper with evidence, or provide false statements during inspections were punishable under sections 179, 181, 191, and 418 of the IPC.
- After: Such offenses are now punishable under sections 214, 216, 227, and sub-section (3) of section 318 of the Bharatiya Nyaya Sanhita, 2023.
This amendment brings GST-related penal provisions in line with the Bharatiya Nyaya Sanhita, 2023, which is part of India’s legal overhaul. The substitution of these sections ensures that the legal framework under GST remains up-to-date with the country's evolving legal code. This update also highlights the CBIC’s focus on ensuring transparency and accountability in GST inspections and search operations.
Businesses and professionals should take note of this change and ensure compliance with the updated legal provisions during inspections to avoid penalties related to misleading or tampering with evidence.
Official copy of the notification has been attached
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