Tue. Apr 23rd, 2024
gst good and services tax

Getting strict on the tax evasion cases, Union Finance Ministry has made it clear that anyone evading taxes in excess to 5 Crore after the implementation of GST, will be taken into custody without any warrant.

223 Page long FAQ of CGST (Central Goods and Services Tax) suggests many more clarifications on various possible general doubts. It states that if the offense relates to evading of taxes or wrong entry of taxes and is in excess of 5 Crore will be considered as a non-bailable offense and such offenders can be taken into immediate custody. Other offenses in the category are however bailable.

The FAQ states that non-bailable offense means that the police office has the authority to arrest the offender without a warrant or to start an investigation even without the permission of a court. However, the arresting officer will need to give in writing about the offense in which offender is being arrested, also the offender will have to be presented in front of District Magistrate within 24 hours of the arrest.

Bailable or Non-cognizable offense are the ones with less serious impact and police will need permission from court to initiate an investigation as well as a warrant to arrest the offender. Also, once an arrest is made for a bailable offense, an deputy or assistant commissioner can issue a bail.

Also, in case of non-cooperation from the management of a company, the officer can issue a summon and failing to respond to that, the individual or the company will also be liable to a penalty.

By Prithviraj Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.

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