GST panel proposes higher prosecution threshold, shorter jail terms

The GST Council is likely to consider raising the monetary threshold for prosecution to Rs 10 crore from Rs 5 crore, along with shorter jail terms for some offences, The Hindu BusinessLine reported. The proposals have been deliberated by the GST Council’s Law Committee and will be placed before the Council at its October 7 meeting, officials told the newspaper. The Law Committee, comprising officials from the Centre and states, examines GST legal provisions and recommends statutory changes to the Council. A key recommendation is to raise the prosecution threshold, which was last revised in 2017. With the growth of the economy, there is a need for an upward revision in line with periodic review of criminal provisions, an official said. The committee has also proposed lowering the maximum imprisonment for tax evasion in the Rs 5 crore to Rs 10 crore range to two years from three years at present. However, the committee could not agree on whether GST arrest powers should be retained. While there was consensus on revising prosecution and punishment provisions, views differed on removing arrest provisions, so the Council will take the final call, the official said.
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