The government is considering removing the penal offences which are already covered under the IPC from the GST Act to make it more taxpayer-friendly, an official said. The part of the exercise to decriminalise GST law is supposed to be taken up in the next GST Council meeting. The Finance Ministry will propose amendments to the GST law once approved by the GST Council, which could be taken up in the upcoming Parliament session next month.
The official said, “law committee has finalised the amendments in Section 132 of the GST Act as part of the exercise to decriminalise the law”.
The offences that are similar to those covered under the Indian Penal Code would be removed from GST law, the official added.
The amendments in Section 132 of the GST Act would be placed before the GST Council for approval. After that, it would go to Parliament for implementation of changes in the GST Act. Once approved by Parliament, states are obligated to amend their state GST laws.
Tax experts said basically fake billing offences could be part of the decriminalisation exercise. They may also comprise supplies of goods or services or both without proper invoices and bills without a supply of goods or issues of invoices.
Also, the act of availing input tax credit (ITC) using fake invoices could be catered to under the offences stated in the IPC.
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Source: Economic Times
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