The Investigation Wing of GST, which comes under the Central Board of Indirect Taxes and Customs (CBIC), has issued guidelines regarding GST. Under this, arrest cannot be made in cases where companies are not paying GST due to differences over the interpretation of the law.
New Delhi. The Investigation Wing of GST, which comes under the Central Board of Indirect Taxes and Customs (CBIC), has issued guidelines regarding GST. Under this, in cases where companies are not paying the Goods and Services Tax (GST) due to differences over the interpretation of the law, they cannot be arrested.
According to a Business Standard report, the CBIC said that in the first case, top executives of companies were not summoned unless there was strong evidence of their involvement in taking decisions involving damage to the exchequer. Further, only those who have an intention to evade tax or if someone has used wrong input tax credit can be arrested.
Would be a great initiative
According to experts, these guidelines are a major initiative to address the concerns of the industry regarding arbitrary arrests and summons by the GST authorities. Where the interpretation and technical nature of the law is concerned, in such cases recourse should not be taken to arrest.
Under what circumstances will the arrest take place?
Now according to the new provision, any person can be arrested only if there is any investigation or evidence tampered with, fraudulently or wholly indulges in taking input tax credit. Through section 69(1) of the CGST Act, commissioners have been empowered to arrest a person involved in these offences. However, before arresting a person, the commissioner has to see whether the arrest is warranted to ensure proper investigation.
