Important prosecution amendments proposed vide Budget 2021–
|Current provisions||Proposed amendment|
|Conclusion of proceedings, against the main person, under section 73 or section 74 means the conclusion of penal proceedings against all the other persons under any of the following sections-
||Conclusion of proceedings, against the main person, under section 73 or section 74 means the conclusion of penal proceedings against all the other persons under any of the following sections-
Thus, as per the proposed amendments even after completion of proceedings under section 73 and section 74, a liable person can be penalized under section 129 and section 130.
It is proposed to insert an explanation to section 75(12) which clarifies the inclusion of the term ‘self-assessment tax’. As per the explanation, self-assessment tax will cover the tax payable as per details of outward supplies filed under section 37 (Form GSTR-1), however, not included in the return filed under section 39.
Accordingly, recovery of tax (under section 79) can be initiated against the tax liability reflected in Form GSTR-1.
It is proposed to insert a proviso to section 107(6) which states that 25% of the penalty amount should be pre-deposited before filing an appeal against an order passed in Form GST MOV-09.
As per substituted clause (a) and clause (b) to section 129(1), post detention/ seizure, the goods will be released on payment of the following amount of penalty-
|Particulars||Amount of penalty payable for release of goods|
|Cases, wherein, the owner of the goods comes forward for payment of an amount of penalty.||
2% of the value of goods or INR 25,000 whichever lower.
200% of the tax payable on the goods.
|Cases, wherein, the owner of the goods don’t come forward for payment of an amount of penalty.||
5% of the value of goods or INR 25,000; whichever lower.
50% of the value of goods or 200% of tax payable on the goods; whichever higher.
The entire sub-section (3) to section 129 is proposed to be substituted vide Budget 2021. As per the newly substituted provisions, in case of detention/ seizure of goods-in-transit and conveyance-in-transit, the proper officer is-
Entire section 151 is proposed to be substituted. The new section 151 states as under-
As per the proposal, now the Commissioner or any officer (authorized by the Commissioner) will have to mandatorily give an opportunity of being heard to the concerned person, prior to using the information obtained under section 150 (obligation to furnish information return) and under section 151 (power to collect statistics).