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 c
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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.
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