DIVYA DELHI : The government is considering changes to the Goods and Services Tax (GST) law that could reduce the powers of tax officials to arrest people accused of certain tax evasion offences. The proposed move is part of a broader effort to decriminalise selected GST-related violations and make the tax regime more business-friendly. Under the proposed changes, some offences that currently carry criminal penalties could be shifted to a civil or monetary penalty framework. This could mean that taxpayers facing certain violations would primarily be dealt with through fines and recovery proceedings rather than arrest and prosecution.The move is expected to provide greater certainty to businesses and reduce the fear of criminal action over procedural or compliance-related lapses. However, serious cases involving deliberate tax fraud, large-scale evasion or other major violations could continue to attract stringent action. The proposed reforms are aimed at simplifying GST compliance while ensuring that genuine tax evasion is not left unchecked. The government is expected to examine the recommendations before finalising amendments to the GST law.
