Quick Summary
To promote ease of doing business, the government is working on a proposal to decriminalise certain offences under the goods and services tax (GST) by raising the threshold limit from Rs 2 crore to Rs 5 crore in tax evasion cases. A proposal is under consideration to raise the threshold to Rs 5 crore for initiating criminal prosecution. The matter will be put up before GST Council soon, a senior official said. Currently, the GST evasion of Rs 2-5 crore attracts three years jail term while
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The government is proposing to raise the threshold for initiating criminal prosecution for GST offences from £2 crore to £5 crore in tax evasion cases.
Currently, GST evasion of £2-5 crore can attract a three-year jail term.
Offences involving GST evasion up to £5 crore will be made compoundable, meaning arrests and jail terms may be avoided.
The government is considering this to promote ease of doing business and encourage taxpayers to compound their offences rather than engage in litigation.
No, the government is not in favour of decriminalising offences involving more than £5 crore, as a higher threshold could lead to increased tax evasion and impact revenues.
The amount payable for compounding of offences is 50% of the tax amount involved, with a minimum of £10,000 and a maximum of 150% of the tax or £30,000, whichever is higher.
CAclubindia
