Firms likely to move court against arrest provisions under GST laws

While the government claims that companies are booked under GST laws for fraudulently claiming the input tax credit, experts find loopholes in the provisions, particularly those related to arrests

Companies are likely to file a petition in the Orissa High Court (HC) next week challenging constitutional validity of jail provisions under the goods and services tax (GST) laws.
 

While the government claims that companies are booked under GST laws for fraudulently claiming the input tax credit (ITC), experts find loopholes in the provisions, particularly those related to arrests.
 

According to the Orissa HC’s observation in a case pertaining to jail of a businessman, 1,620 cases of fraudulent claims for ITC involving a sum of Rs 11,251.3 crore were registered during 2018-19. The number of cases stood at 535 involving