Possible decriminalisation of GST offences below Rs 5 crore
- To promote ease of doing business, the government is working on a proposal to decriminalise certain GST offences by raising the threshold limit in tax evasion cases from Rs 2 crore to Rs 5 crore.
- “A proposal is being considered to raise the threshold for initiating criminal prosecution to Rs 5 crore.” “The issue will be brought before the GST Council soon,” a senior official said.
- Currently, GST evasion of Rs 2-5 crore carries a three-year jail term, while tax evasion of up to Rs 2 crore carries a one-year jail term.
- While no arrests or jail terms will be issued, the government will make GST offences up to ‘5 crore compoundable.