The 57th GST Council has recommended removing the power of GST officers to arrest taxpayers under the GST law as part of a wider move towards decriminalisation and trust-based tax administration.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, has recommended doing away with the independent arrest powers presently available to GST officers for specified offences.
The reform seeks to separate tax recovery proceedings from criminal enforcement and reduce coercive action in GST matters. Tax authorities will, however, continue to have powers to determine and recover tax, interest and applicable penalties. Serious cases involving deliberate fraud can still face prosecution through the prescribed legal process.
The recommendation will require necessary amendments and implementation measures before the existing statutory arrest provisions cease to operate. CA Sansaar