Prime Minister Narendra Modi-led government had decided to roll outthe Goods and Service Tax (GST) from July 1. Which means from the first day of the next month, the country will be under the new game-changer tax policy. According to a report by Bhaskar, if anyone who gets involved in tax evasion or fraud under GST, will have to face certain consequences, which can even mean going behind the bars. The government is going to implement laws in relation to GST and even though Centre says the intention is not to harass anyone, laws have to be obeyed. And these entail norms according to which people will be punished if they indulge in illegality. So, forewarned is forearmed, here’s what you should not to do under GST to avoid punishment:
1) People will be punished under GST law if they are found evading tax or being involved in any other fraud related to tax.
2) According to the law, if someone is involved in tampering of invoices or giving false information to the authorities or tax officials, or provide false information then they can be jailed.
3) Also, if a person doesn’t pay the taxes properly or if he/she adopts illegal methods during the supply or transport of goods, then they can be sent behind the bars – of course, only after a case has been taken to its logical end.
4) According to GST, people who are caught ‘violating’ any other tax rules, they will be liable to pay a penalty that starts from Rs 10000 and this can even stretch to imprisonment of 5 years.
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5) Under the GST regime evading tax of over Rs 5 crore would be a non-bailable offence and that the police would have the authority to make an arrest without a warrant, as per a report by Times of India.
6) The Central GST (CGST) Act provides that if the offences relating to taxable goods and/or services where the amount of tax evaded or the amount of input tax credit wrongly availed or the amount of refund wrongly taken exceeds Rs 5 crore, shall be cognizable and non-bailable.
7) If someone takes and/or utilises input tax credit without actual receipt of goods and/or services, or deliberately suppresses the sales to evade tax, then it will be counted under Tax evasion.
8) If someone collects any GST (even if he collects any GST in contravention of provisions), he/she has to deposit it to the government within 3 months. Failure to do so will be an offence under GST.
9) Obtaining refund of any CGST/SGST by fraud is also counted as illegal, as reported by cleartax.in.
10) If someone submits fake financial records/documents or files fake returns to evade tax, then he/she shall be termed as an offender under GST.
Goods and service tax (GST) will bring in ‘One nation one tax’ to unite indirect taxes under one umbrella and facilitate Indian businesses to be globally competitive. The GST is structured for efficient tax collection, reduction in corruption, easy inter-state movement of goods etc. To prevent tax evasion and corruption, the GST Law lists the offences and penalties.
Meanwhile, the GST Council on Sunday made the dreaded anti-profiteering clause more palatable specifying a sunset clause of two years even as it relaxed the deadline for filing returns under the goods and services tax (GST) till September. The Council also approved five sets of rules but deferred a decision on the E-Way Bill rule. The GST — a uniform levy across the country — will be rolled out at midnight on June 30, ahead of which the council will meet again.