Budget may make faking input tax non-bailable crime for buyers too

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The government is likely to make fraudulent claims for input tax credit a nonbailable offence in the hands of recipients of goods and services in the February 1 budget by tightening the GST law, as it seeks to plug leakages. CXOs, directors or employees directly responsible for making such claims can also be penalised as per the proposed changes aimed at tackling evasion. “Changes are being proposed to the law to plug issues related to fraud input tax credit,” said a government official. The threshold of Rs 5 crore will apply for the offence being treated as bailable; beyond that it will be non-bailable.

The provision already applies to suppliers of goods and services. GST Council has Okayed Changes The provision is now proposed to be expanded to include recipients found guilty of colluding in such fraud, said the person. The proposed amendments to Sections 122 and 132 of the GST Act have been endorsed by the law committee and the GST Council, the apex decision-making body for the tax. Current provisions don’t have specific measures to deal with such tax evasion.

Read More at: https://economictimes.indiatimes.com/news/economy/policy/budget-may-make-faking-input-tax-non-bailable-crime-for-buyers-too/articleshow/73237436.cms

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