Removing IPC offences from GST Act will be welcome move: Experts

Proposal will reduce litigation for businesses but may lead to longer prison sentences, they say

A committee’s proposal to remove from the GST Act penal offences already covered under the Indian Penal Code (IPC) will be friendly for businesses by reducing litigation, experts have said.

The Law Committee’s proposal is expected to be discussed in an upcoming meeting of the GST council and later by Parliament in its winter session. The committee has finalised the changes to Section 132 of the CGST Act, 2017, which deals with punishment for offences like evasion and wrongful availing of input tax credit.

"This is a very welcome move and must ideally reduce the conviction rate," said advocate Abhishek