Prosecution under GST

According to Section 132 of CGST Act, offences for which a person can be arrested are:

1. if a person supplies goods or services without invoice, with intention to evade tax.
2. Issues invoice or bill without supply, which leads to wrongful availment or utilization of Input Tax Credit or refund of tax.
3. Avails Input Tax Credit using fake invoices or fraudlently avails input tax credit without any invoice or bill.
4. Charges GST but fails to pay the same to the government within 3 Month. (Even if he Charges GST in contravention of the act, he still has to deposit the tax amount to the government within three months, failure to do so is an offence under GST).

Arrest under GST:

As per the provisions of section 132 a person can be arrested only if the amount of tax evasion exceeds 100 lakh rupees or if he has convicted of an offence under this section earlier.

If the amount of tax evaded or wrong ITC availement is:

a) between 100 lakh and 200 lakh rupees, the imprisonment may extend to one year with fine.

b) between 200 lakh and 500 lakh rupees, the imprisonment may extend to three years with fine.

c) exceeds 500 lakh rupees, the imprisonment may extend to five years and with the fine.

Destroying evidences

A person can be imprisoned for upto six months with fine for destroying evidences, preventing officer from his duty or falsifying the evidences.