It is likely that in upcoming Budget on February 1st, the Government may make fraudulent claims for input tax credit a non-bailable offence in the hands of recipients of goods and services. “Changes are being proposed to the law to plug issues related to fraud input tax credit,” said a government official. The threshold of Rs.5 Crore will apply for the offence being treated as bailable and also beyond that limit it will be treated as non-bailable offence. Moreover, the amendments in Sections 122 and 132 of the GST have already been endorsed by the law committee and the GST Council, the apex decision-making body for the tax. In this direction, amendment to Section 49 of the GST Act has also been endorsed empowering officials to block credit in the case of fraud.
