GST Council Meet Raises Threshold For Launching Prosecution To Rs 2 Crores

The 48th GST Council presided over by Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs recommended decriminalizing offenses under Section 132, raising the threshold for tax prosecution, and lowering the amount of compounding in GST.

Except for the offense of issuance of invoices without a supply of goods or services or both, the Council has recommended raising the minimum tax amount for launching a GST prosecution from Rs. 1 crore to Rs. 2 crores, except for the offence of issuance of invoices without supply of goods or services or both.

The council recommended reducing the compounding amount from the present range of 50% to 150% of the tax amount to the range of 25% to 100%.

It was also recommended to decriminalize certain offenses specified under Section 132 of the CGST Act, 2017 in respect of obstruction or preventing any officer from discharging his duties; deliberate tampering with material evidence; and failure to supply information.

48th Meeting of the GST Council

Date: 17.12.2022

Click Here To Read Press Release