Budget 2020: Fraudulently availing of GST input credit could be non-bailable, cognizable offence

The report stated that these racketeers ‘only issue invoices without actually supplying any goods or services. The GST shown to have been charged on such invoices is neither paid nor is intended to be paid.’

The new provisions in Section 132 of the CGST Act will empower authorities to levy penalty on a person if it is found that there is a false entry or omission of any details relevant for computation of total income in the books of accounts maintained by the individual. The Budget document further added that the new changes will be effective from April 1, 2020.

Anuj Gupta, a Delhi-based chartered accountant said:"Authorities can impose fine on the offenders who fraudulently obtained input credits. However, it its discretion of the officer who can also file a more serious case on the offender. It could also be a  non-bailable, and cognizable offence."

The new measures come in the light of fall in government revenues from GST. Stricter measures are expected to boost tax collection at a time when with the revised estimates for 2019-20 for CGST fell short of achieving the targeted revenue collections.