Business
GST prosecution threshold rises to Rs 5 crore
The Hindu BusinessLine·
The Confederation of Indian Industries said GST Council decisions on decriminalisation and enforcement took effect from Sunday. On October 8 the Council recommended withdrawing arrest powers for tax officials. It raised the prosecution threshold from Rs 1 crore to Rs 5 crore. CBIC told field formations to apply reforms pending law amendments, including no show cause notice below Rs 10,000.
Prism
What It Means For You
- Tax dues below Rs 10,000 are not to draw a show cause notice under the Council package.
- Prosecution exposure for many GST cases now starts only above Rs 5 crore once the threshold change applies.
- Businesses still face criminal prosecution for serious deliberate fraud and evasion, CII noted.
What's Happening
- CII called the GST Council's October 8 enforcement package a major institutional reform.
- Recommendations include ending arrest powers for tax officials and narrowing Section 132 offences.
- CBIC directed field offices to implement the facilitation measures until statute amendments pass.
What Changed on Paper
- The prosecution monetary threshold rises fivefold from Rs 1 crore to Rs 5 crore.
- E-way bill interception and verification procedures were marked for rationalisation.
- CBIC circulars on October 26 covered registration, notices and evidence-backed fraud allegations.
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