Officers can launch prosecution in cases of over Rs. 5-crore GST evasion

GST officers can now launch prosecution against offenders in cases where the amount of evasion or misuse of input tax credit is more than Rs 5 crore, the Finance Ministry has said.

However, this monetary threshold will not be applicable in the case of habitual evaders or in cases where arrests have been made at the time of investigation.

“One of the important considerations for deciding whether prosecution should be launched is the availability of adequate evidence, the GST investigation wing under the Finance Ministry said, while issuing instructions for launching prosecution.

Prosecution should normally be launched where the amount of tax evasion, or misuse of ITC, or fraudulently obtained refund is more than Rs 5 crore, it said. Launching of prosecution by taxmen means commencement of legal proceedings.