Launching of prosecution in GST: In legal term prosecution in GST means any proceedings carried out against someone in the court of criminal law in India for doing any GST criminal offence.
Any individual who commits the following offence intentionally can be prosecuted in the court of law:
Any taxpayer who commits the following offences is punished accordingly. Here is a chart showing the punishment for the above-listed offences:
|Tax Amount||Bailable or Non-Bailable||Jail Term|
|100-200 Lakhs INR||Bailable||Up to 1 year|
|200-500 Lakhs INR||Bailable||Up to 3 years|
|Above 500 Lakhs INR||Bailable*||Up to 5 years|
*In case if the taxpayer commits the following offences and where the tax amount exceeds the mark of 500 Lakh INR then in such a case the offence committed becomes non-bailable.
These stricter steps were taken to prevent tax evasion.
The taxpayer can be punished with a 6 months imprisonment in case if he/she
In case a taxpayer repeats the same offence twice then the jail term for the committed offence can extend up to 5 years along with fine. However, without the prior approval of the Commissioner, a taxpayer cannot be prosecuted.
GST Prosecution for an offence in the court of law needs the taxpayer to appear before the Magistrate at every hearing. On the other hand Compounding of offences helps in avoiding litigation. Under compounding of offences under GST, the accused is not required to appear in the court of law and the charges can be relieved on the payment of compounding fee. Here the amount of compounding fee must not be higher than the maximum fine applicable under the relevant provisions.
Compounding fee is available for a majority of the cases however there is some case where compounding will not be available and they are:
If you want to know more information regarding GST prosecution limit, monetary limit for arrest under GST, visit the site:www.mastersindia.co. Here, you will find complete solution of all your GST related queries.
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