GST Council to decide on decriminalisation of GST offences on Dec 17

New Delhi: The GST Council, led by Finance Minister Nirmala Sitharaman, is likely to decide on issues like decriminalisation of GST offences and setting up of Goods and Services Tax (GST) Appellate Tribunals at its meeting on December 17. In a report, the law committee of the GST Council has suggested increasing the monetary threshold for launching prosecution for GST offences. The committee has also suggested that the fee payable by taxpayer for compounding of GST offences should be lowered with a view to improving ease of doing business.

Law committee suggests raising threshold of launching prosecution to Rs 20 cr

Although, the GoM is yet to submit its report to the Union Finance Minister, it is widely expected that the panel would be submitting it before the Council meeting on Saturday. To decriminalise GST offences, the law committee has suggested raising the threshold of launching prosecution to Rs 20 crore, from Rs 5 crore at present. Launching of prosecution by taxmen means commencement of legal proceedings against the offender.

Centre releases Rs 17k cr GST compensation to states: Finance Ministry

Council to consider removing penalties already covered in IPC from GST Act

The Council, in its meeting to be held virtually on December 17, is also likely to consider removing those penal offences which are already covered under the Indian Penal Code (IPC) from the GST Act to make it more taxpayer friendly.

The committee has also suggested that the fee for compounding offences be reduced to 25 percent of the tax amount, from 50-150 percent currently.

Currently, according to the GST Act, the amount payable for compounding of offences is 50 percent of the tax amount involved subject to a minimum Rs 10,000. Maximum fee for compounding is 150 percent of the tax involved.

Expected amendments to GST law to be made in the ongoing winter session

Once the proposal of GST law decriminalisation is approved by the GST Council, amendments to the central GST Act is expected to be introduced in the ongoing winter session of Parliament.

Once approved by Parliament, states would be required to amend their state GST laws in their legislative assemblies.

Composition of GSTATs

To set up Goods and Services Tax Appellate Tribunals (GSTATs), the GoM has suggested that the tribunals should consist of two judicial members, and one technical member each from the Centre and states, besides a retired Supreme Court judge as President, sources said.

The GoM on GSTATs was set up in July under the chairmanship of Haryana Deputy Chief Minister Dushyant Chautala.

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