GST Act: First notice, then are threatened with arrest

-SUCO asked for notice-data of arrests under GST Act
-Order given during hearing on 281 petitions
New Delhi. The Supreme Court has sought from the Center the data of notices issued and arrests for default of Rs 1 to 5 crore under the GST Act. The court said that sometimes arrests are not made, but people are harassed by issuing notices and threatening them with arrest.
The court made this comment on Thursday (May 2) during the hearing of 281 petitions challenging the provisions of the GST Act, Custom Act and PMLA. The court said that we can set guidelines to protect citizens from taking away their freedom, but will not allow them to be harassed.
Officials accused of misuse of powers
In fact, senior advocate Siddharth Luthra, appearing for the petitioners, had said that officials misuse their powers under the GST Act. Arrests are not made, but people are issued notices and threatened with arrest. It is reducing the freedom of the people.
On this, the bench of Justices Sanjeev Khanna, MM Sundaresh and Bela M. Trivedi, Additional Solicitor General SV Raju, appearing for the Centre, said that people cannot be sent behind bars in all cases. The bench said that there should be a distinction between cases of fraud and unintentional omissions.
Center said- difficult to collect data related to states
The court expressed concern over the lack of clarity on the powers of arrest in Section 69 of the GST Act. Additional Solicitor General SV Raju said that he will collect data related to notices and arrests under the Central GST Act.
However, he also said that it would be difficult to collect such information related to the states, but he would try to answer the bench's questions on the next hearing day. The next hearing of the case will be on May 9.
GST was implemented in 2017
GST i.e. Goods and Services Tax is an indirect tax. It was implemented in 2017 to replace a variety of previous indirect taxes (VAT), service tax, purchase tax, excise duty and many other indirect taxes. GST has four slabs of 5, 12, 18 and 28%.
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