IPC and CRPC Under GST Act

IPC and CRPC Under GST Act

According to various Central Government say illegal transaction still carry on under GST law.  Although  Goods and Service Tax  Act  2017  main purpose  was one nation one tax and  helps in smoothen transaction between the states and also among the other nations. But offences like tax evasion, fraud, forgery etc. are still present. To prevent from that offences government imposed some laws and penalties.

  • The Indian Penal Code, 1862

The Code is the country’s primary criminal Code and was drafted during the British Raj in the year 1850 and was presented to the then Legislative Council in the year 1856. It came into force on 01st January 1862.

  • Criminal Procedure Code, 1973

The Code is the procedural law which provides a detailed procedure for punishments under the penal laws. It thereby enforces and administers the Indian Penal Code and various other substantive criminal laws. The Parliament enacted the Code on 25th January 1974 to consolidate and amend the law relating to Criminal Procedure.

Indian Penal code ( IPC) is substantive  of law and Criminal Procedure Code is procedural of law.

The some major offinces under Goods and Services Tax Act,2017

1.Use GSTIN of another person

2. Flase information filing in GST Registration

3. Does not maintain  proper books of accounts

4. Sale  of Goods  or services without issue  proper GST  invoice.

5.  Claim input Tax credit without actual purchase of goods or services or actual receipts

6. Commits fraud in filing of GST return

7. Flase information in GST return.

8. Claim refund with help of wrong  information.

some  provision of Indian Penal code 1862 under GST Act

Secion 120A and 120B of Indian Penal Code 1862

An act which is done by 2 or more than 2 persons agrees to do an illegal act is known as criminal conspiracy. In Section 120B punishment for criminal conspiracy is provided.

In GST if a group of 2 or more than 2 persons agrees to commit an illegal act like tax evasion, fraud etc. they are held liable under the act of criminal conspiracy.

 Sections 463 to 468 of Indian Penal code 1862

Section 463 Forgery,

464-Making a false document to forgery,

465-Punishment for forgery,

466-Forgery of record of court or of public register,

467-Forgery of valuable security and

468-Forgery for purpose of cheating are offences relating to documents.

Under GST documents plays a vital role whether in filling returns or in claiming refund. In every area document is required. So when there is a forgery related to the documents, they committed an offence under these sections.

Section 46, 67, 165,436 of Criminal Procedure Code 1973

 Section 46  deals with how arrest is made . Section 69 of Goods and Services Tax Act 2017  has power to arrest a person by an order of commissioner  when he believes that a person has committed any offence specified in  clause (a), clause (b), clause (c) and clause (d) of sub section 1 of section 132 which is punishable under sub clause 2 of same section.

 Section 67 states that if summon is  issued  outside the  local authority, a duplicate copy of that summon should be send to the magistrate of that outside authority to serve that summon. Under GST same is applicable if a person resides  out of the authority of that local body.

 Section 165  deals with search by the police officer. Section 67 of the CGST Act defines that an officer not below the rank of joint commissioner can authorize in writing an inspection or search.

Section 436  deals with in what cases/offences bail should be granted. The offences are of two types bailable and non-bailable. Bailable offences are those n which bail is granted to the person but non-bailable offences are those in which bail is not granted to the person. Same under the CGST Act some offences are the bailable and non-bailable.


Goods and Service Tax Act 2017 main purpose is one nation one tax and  lots of transparency  so  that no person can do business without proper documents and legal compliance  of the GST Act. Above mention points are some of provision under GST Act to prevent  Flase filing information, commits fraud, transfer goods and service without proper documents, GST Tax avoid. Now Central Government strict to follow GST ACT provision. So please aware the GST provision properly .


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