Arrest under GST still remains a grey area

Arrest under GST still remains a grey area

The concept of taxation is based on the foundation of the welfare of citizens. While the primary focus of indirect tax legislation is on revenue recovery and monetary penalties, indirect tax authorities can also take actions including arrests in disciplining those who misuse the provisions of such legislations.

The provision giving powers to arrest a person dates back to the pre-GST era. This has remained controversial with cases where it can be exercised legally.

Under GST, a commissioner may arrest or authorise arrest if he or she has sufficient ‘reason to believe’ that the person concerned has committed an offence.