Representative Pic
Representative Pic

Indore: GST specialist CA Nitesh Jain said that arrest is possible under section 132 of the GST Act if the evasion is more than Rs 2 crore. The quantum of imprisonment is subject to the amount of tax evasion.

In case of amount of tax evasion or wrong Input Tax Credit is between Rs 3 to 5 crores, the punishment can be up to five years. Also, a fine can be imposed. CA Jain also elaborated on the provisions of other penalties for various types of violations under Section 122. He addresses a webinar organised by Tax Practitioners Association on
Friday. CA Jain explained about the provision of investigation, audit, search and seizure made by the State and Central GST department.


He said that under the GST regime each taxpayer is divided under the jurisdiction of the Central (CGST) and the State (SGST). Therefore, any taxpayer can be investigated only by the officer having jurisdiction. In the case of search, any taxpayer can be investigated by any department and the department which has searched will be able
to investigate thoroughly even if the firm is registered with another department. Appeal can also be made before the same department in case of demand. He also said that the department cannot investigate anyone outside its jurisdiction. The right of carrying out the search across the country beyond any jurisdiction is given to Directorate General of GST Investigation (DGGI). He also informed that during the search, the taxpayer can call his lawyer or
advisor, but he has the right to see the proceedings only from a distance. They cannot help in any other way.

Earlier, Tax Practitioners Association President CA Manoj Gupta said in his presidential address that notices are being sent by the department to taxpayers for checking interest payment and input tax credit. Along with this, letters are also being sent for departmental audit, so it is necessary that proper answers are given at the right
time. A large number of chartered accountants, tax consultants and lawyers were present in the webinar. CA Krishna Garg conducted the webinar and CA Kirti Joshi deliver vote of thanks.

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