Arrest provisions under CGST Act challenged in Bombay High Court

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

A writ petition has been filed in the Bombay High Court challenging the arrest provisions under the goods and services tax (GST) laws. 

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

Abhishek Rastogi, partner at Khaitan & Co, who has filed the petition, said the Section 69 of the Central GST Act is arbitrary since it gives powers to GST commissioners to arrest a person if he has “reasons to believe” that the person has claimed fraudulent ITC. Commissioners can order up